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New Elk Mine <br />QUARTERLY COAL WASTE BANK INSPECTION REPORT <br />CDMR Rules 4.09.1(11) and 4.10.2(2) <br />Mine: NEW ELK <br />Waste Bank MSHA ID. No.: Primary Refuse Disposal Area <br />Inspection Period: Second Quarter 2006 <br />Inspection Date: 6/28/2006 <br />General Description or Reference to Site Plan: <br />The Refuse Disposal Area is located north of State Highway 12 and the Middle Fork of the <br />Purgatoire River. Refuse was transported from the preparation plant to the RDA by conveyor belt <br />The plant has been idle since March of 1996 at which time the last refuse was placed on the <br />fill area. Refuse has been auger drilled to base rock to collect samples in anticipation of <br />reprocessing the Muse and obtaining a viable commercial product Erosioh on the slope below <br />the substation has been repaired. <br />Activity During Inspection: <br />Area has been idle throughout the quarter and no activity oxurred during the inspection. The <br />surtace was dry as recent precipitation has been limited. <br />Maintenance on the rip-rapped drains was completed during the first quarter. An inspection of the <br />drains determined that they were returned to design specifications. <br />Drainage: {Discussion of springs. seeps, overland and channel flow, underdrain construction and/ <br />or discharge, integrigr of 100-year 24-hour drainage structures, and evidence of positive drainage). <br />No springs or seeps were observed on the refuse side sopes. Positive drainage is established on <br />all areas. Vegetation is well established on previousty reclaimed areas. <br />Observation of Fill Construction: (Description of material, compaction, lift thicknesses, slopes, <br />and construction methods). <br />No new fill was placed during the quarter. <br />Five holes were angered to 100-125' with no water encountered. Moisture ranged from 3.36% in the <br />1-25' depth to a maxium of 9.65°~ at 100-125'. <br />Indications of Potential Failure or Instability: <br />None observed. Surface and side slopes were inspected for slumps, tension cracks, and other <br />indications of potential failure. <br />Page 1 of 2 <br />