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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 <br />Waste Bank MSHA ID. No.: Development Waste Disposal Area <br />Inspection Period: Third Quarter 2005 <br />Inspection Date: <br />8/2/2005; 9/26/05 <br />General Description or Reference to Site Plan: <br />The Development Waste Disposal Area is located south of State Highway 12 and west of <br />the main facility Access Road. It is adjacent to and north of the Middle Fork of the <br />Purgatoire River. The area has been used for disposal of waste rock from the underground <br />mine. Since mine Gosure in 1989, the area has been used for disposal of sediment removed <br />from ponds and ditches located within the mine permit area. <br />AcWlty During Inspection: <br />On August 2, 2005, a fully loaded 35 ton articulated haul truck was used to conduct arolling- <br />compacfion test of the operational surface. After testing haulage of sediment resulting from <br />clean-out of sediment pond S and containment areas RDASW and RDASE started. <br />Area on September 26 was idle. Pond clean-out was suspended after hauling onty 35 loads due <br />to water inflows into pond B. <br />Drainage: (Discussion of springs. seeps, overland and channel flow, underdrein construction and/or <br />discharge, integrity of 100-year 24hour drainage structures, and evidence of positive drainage). <br />Positive drainage is maintained on the surface of the DWP. No evidence of springs nor seeps <br />was observed. <br />Observation of Fill Construction: (Description of material, compaction, lift thicknesses, slopes, <br />and construction methods). <br />No additional fiN material has been placed during the quarter. No significant erosion was observed <br />on the side-slopes. Drainage ditches were Gear of any sediment accumulation. <br />Page 1 of 2 <br />