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January 24,2022 C-1981-012/New Elk Mine JLE <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 N -Roads <br /> N -Availability of Records N -Reclamation Success <br /> N -Backfill&Grading N -Revegetation <br /> R -Excess Spoil and Dev.Waste N - Subsidence <br /> NA -Explosives N - Slides and Other Damage <br /> N -Fish&Wildlife R - Support Facilities On-site <br /> R -Hydrologic Balance Y - Signs and Markers <br /> N -Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br /> N - Other N - Special Categories Of Mining <br /> R -Processing Waste R -Topsoil <br /> CON VOENTS <br /> This was a partial inspection of the New Elk Mine,Colorado Division of Reclamation,Mining and Safety(DRMS <br /> or Division)permit number C-1981-012,operated by New Elk Coal Company,LLC (NECC). I,Jared Ebert with <br /> DRMS conducted the inspection. Mr. Connor Drinkard with DRMS and Vince Massarotti with NECC <br /> accompanied me during the inspection. <br /> The civil penalty for violation number CV-2021-001,has been finalized and fixed. DRMS will issue a"Notice <br /> and Order"to pay the civil penalty within 30 days of the notice. <br /> Technical Revision number 76 (TR76)remains incomplete. This issue was discussed with Nick Mason with <br /> NECC. According to Mr.Mason,NECC is working with Colorado Parks and Wildlife (CPW)to establish the <br /> portion of the right-of-way of the proposed road that will be considered a"Public Road". It was discussed that the <br /> non-public road section and any land affected by the upgrade of the right-of-way must be consdered affected area <br /> and must be encompassed in the permit boundary. <br /> Permit Revision number 5 (PR5),is currently under review. NECC is preparing a response to the last DRMS <br /> adequacy review. The decision date is currently March 11,2022. <br /> The abandoned/sealed drill holes approved under TR74 was discussed. Mr.Mason indicated he beleived the caps <br /> for the markers have been delivered and indicated they would be installed as soon as possibe when the sites were <br /> accessible. Further,I remindied Mr.Mason that proof of compliance with the plugging and sealing plan by <br /> providing a report in accordance with Rule 4.07.3(2)(c)is due by January 29,2022 for the drill holes in question. <br /> EXCESS SPOIL and DEVELOPMENT WASTE—Rule 4.09 <br /> Placement; Drainage Control; Surface Stabilization: <br /> DWDA 91 and DWDA 92 were observed. Overall these piles were stable,no issues or problems were noted. <br /> Number of Partial Inspection this Fiscal Year: 5 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 2 of 6 <br />