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CENTRAL APPALACHIA MINING, LLC McIANE CANYON MINE IMPOUNDMENT INSPECTION In accordance with Rule 4.05.9(14), impoundments will be inspected during construction and upon completion of construction by a qualified registered professional engineer or other qualified professional specialist under the direction of a professional engineer. This certification is for the repair of the embankment of the sediment Pond located at the McClane Canyon Mine. During a routine fourth quarter pond inspection performed October 8, 2004, it was noted the Operator was performing maintenance on the primary spillway line because it had noticed seepage north of the outlet valve on the primary spillway. The Operator located some holesin the primary spillway which were"fixed. After the holes were fixed, the area was backfilled. On November 18, 2004, I was on site and noticed the embankment of the sediment pond was cracking. The cracks were semicircular and were centered on the primary spillway. I instructed the operator to begin dewatering the pond (by pumping) to assure the embankment did not fail. I returned to the office and notified the DMG (Dan Mathews) of the problem. On November 19, 2004, the DMG issued the Operator a Notice of Violation (CV-2004- 005) for failure to maintain the McClane Canyon Mine sediment pond embankment as necessary to ensure integrity and stability of pond embankment. The abatement steps were to dewater the pond, fix the pond embankment and submit a P.E. certification of the reconstructed pond embankment in accordance with rule 4.05.9(14). After the pond was dewatered to an acceptable point, portions of the pond embankment were excavated in a effort to find the location of seeps. The toe of the embankment was excavated and it was found to be saturated. The assumption was made that there must be a breach in the embankment to cause this level of saturation. Tree roots were suspected of opening a hole through the embankment. The west pond embankment was excavated in excess of five feet deep. A trench tivas then excavated along the centerline of the embankment another five to 10 feet deep. The embankment was found to be hard packed and dry with no evidence of seepage. The tree roots did not penetrate the embankment very far to the west so they were discounted as a cause of any seeps. There was no evidence of water piping along the primary spillway or through the embankment. Since the embankment was found to be hard packed and dry, the cause of the instability was apparently the saturated toe. The toe of the embankment was apparently saturated over a period of time by the holes in the outlet end of the primary spillway. The following actions were taken to repair the pond: Page 1 of 2