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April 9, 2007 Picketwire Processing, LLC C/O Peak Project Management 34115 Co. Rd. 20.8 Trinidad, CO 81082 New Elk Mine Special focus evaluations April 3, 2007 Participants: Ron Thompson, Peak Project Management Kent Gorham, Division of Reclamation, Mining, and Safety (DBMS) Henry Austin, Office of Surface Mining (OSM) I participated in a two special focus evaluations of the New Elk Mine as indicated above. Weather conditions were mild and ground conditions were dry throughout the permit azea, The 2 special focus evaluations were designed to evaluate recently regraded lands (regraded during the 2006 evaluation year of July, 1, 2005, through June 30, 2006); and to evaluate compliance with the post mining topography approved in the DBMS mining and reclamation plan. These evaluations were also designed to evaluate offsite impacts and reclamation success respectively. We found that there were no offsite impacts from the recently regraded and reclaimed acreage on the permit area (surface water runoff control is operating in compliance with the approved mining and reclamation plan; we found that the recently regraded lands were reclaimed in accordance with the approved backfilling and grading plan and reclamation schedule, and that the post mining topography was stable and completed as approved in the mining and reclamation plan. We determined the 2 evaluations applied to the reclaimed West Mine area; 2003 reclamation at the S W coal stockpile; the development waste pile; and post mining topography evaluation only of the former pond 5 area and the reclaimed area east of pond 5. We reviewed Maps 14, 16, and 17, Surface Water Control Plan for the West Portal, Post Mining Land Use of the West Portal, and Post Mining Topography. We began the evaluation to the reclaimed West Portal and worked our way back northeast from there. The West Portal is reclaimed as approved and stable after this First surface water runoff season. This entire area was pre law disturbance, and the operators have done a good job of blending the reclaimed slopes into adjacent undisturbed areas and protecting the reclaimed areas where offsite drainages enter reclaimed slopes. All diversion ditches and berms were stable and functional, and the containment pond was dry. This area meets ap rop ved Post mining topogr~hy and no surface water problems were noted. There is a silt fence below the reclaimed are that needs to be maintained. The West Portal fan area remains to be reclaimed. Several concrete culvert sections remain to be removed from the reclaimed area. One large diameter cmp remains to be removed from a former roadway.