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INSPECTION REPORT Site: National King Coal Mine, Hesperus, Colorado Inspected By: Don R. May, P.E., Project Engineer Inspection Date: Quarterly Inspection September, 2006 P n s: Photograph 1 shows the west pond with some standing water. The inlets, outlets and embankments of both ponds were inspected and appear in good condition. Both ponds are relatively clean of sediment and appear to have more than adequate storage volume. As seen in the photo the previously missing staff gage marking pond depth has been replaced. Drainage Ditches: The drainage channels, on the north and south sides of the waste pile, appear in good general condition. All other drainage channels on the site were inspected and are in good condition. The problem spot near the old tipple on the ditch that runs behind the office has been repaired. Photo 2 shows the heightened bank and the sediment trap on this ditch. This inspection was performed shortly after a series of heavy rains and yet the mine yard is basically dry. Drainage in and around the upper and lower yards is working well and both are in good shape. Care should be taken to keep all of the pipe inlets Gear of sediment and debris. Photo 3 shows a partially blocked pipe inlet. Except where noted, aN drainage features have been oonstruded and are operating as stated in the drainage plan submitted to the Division of Minerals and Geology. Coal Waste Pile: The upper portion of the waste pile (above the road) appears stable and in good condition. The lower portion of the pile face is also stable but does have some rilling which is probably due to the over steeping at the toe. A design modification for the tce of the waste pile was suggested in the last report that would improve this situation. The associated diagram is repeated here. See the previous inspection report for details. The top of the pile is in good condition. The waste pile ditch is shown in photo 4 and photo 5 shows most of the top of the pile. Drainage along waste rock pile access road up the face and around the pile is working well with no signs of undo erosion. Except for the items mentioned above the fill on the waste pile has been constructed as speafied in the design approved by the Division of Minerals and Geology. ~~ b~u Deaig~ slope Schematic diagram of low height retaining wall at toe of waste pile slope.