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January 25, 2018 X-2013-228-01/2013-2014 Sunset Trail Exploration Drilling LDS <br /> <br /> <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br /> <br /> Page 2 of 5 <br /> <br /> <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />N - Air Resource Protection <br />N - Backfill & Grading <br />N - Fish & Wildlife <br />Y - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />N - Other <br /> <br />Y - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Slides and Other Damage <br />Y - Signs and Markers <br />Y - Topsoil <br /> <br /> <br />COMMENTS <br /> <br />This was a partial inspection by Leigh Simmons of the Division, accompanied by Casey Smith of Ark Land <br />LLC. The weather was cold and overcast, with snow on frozen ground. <br />Despite challenging winter conditions, Mountain Coal Company/Arch Coal had constructed roads and pads <br />in order to complete the first phase of exploration (SST2, SST4 and SST7). Earthwork contractors Beavers <br />Construction and D & S Underground, both of Hotchkiss, CO, had both been involved in the construction of roads <br />and pads; and RACS of Delta, CO, had done all of the drilling work. <br />At the time of the inspection all three pads had been constructed and two of the holes (SST2 and SST4) had <br />been drilled and plugged. The drill rig was still at SST4, together with associated equipment, but was scheduled to <br />begin moving to SST7 imminently. Transportation of heavy equipment and materials was extremely challenging, <br />but no mishaps had occurred to date. “Growsers” had been welded to the tracks of the dozers to give them greater <br />purchase on the frozen ground; the dozers (which weigh approximately 80,000 lbs) were then used to assist the drill <br />rig and transport truck on steep sections of the roads. <br />The SST2 and SST7 pads were not accessible at the time of the inspection as the roads had not been cleared <br />of snow. The SST4 pad and the access road were located as shown on the approved map. The pad was level and <br />compact. Topsoil had been stockpiled and a sign posted. Drilling fluid had been confined to the mud pit, which had <br />been enlarged slightly owing to unexpected drilling conditions. The fluid was scheduled to be pumped from the pit, <br />and the pit filled in, during the week following the inspection. Reclamation of the pads (and roads) will be deferred <br />until weather conditions are more favourable. <br /> <br />DOCUMENTS RECEIVED <br />N/A <br />OTHER (SPECIFY) <br />N/A <br /> <br />