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September 16, 2010 C-1981-018/Deserado Mine DTM <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />Y - Air Resource Protection R - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading R - Revegetation <br />NA - Excess Spoil and Dev. Waste N - Subsidence <br />N -Explosives Y - Slides and Other Damage <br />N - Fish & Wildlife Y - Support Facilities On-site <br />R - Hydrologic Balance R - Signs and Markers <br />Y - Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br />NA -Other NA - Special Categories Of Mining <br />R - Processing Waste N -Topsoil <br />COMMENTS <br />HYDROLOGIC BALANCE -Rule 4.05 <br />[]Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage - Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The Mine site was dry. The operator reported that precipitation this far in September may amount to <br />approximately 0.25". There was no evidence of recent storms. Pond DP-1 was inspected. The water level in this <br />pond is very low. The mining operation is pumping out of this pond to use in the mine water system. The <br />drainage ditch between the process ponds is well shaped and armored. No down cutting of this ditch was <br />observed. No problems were noted with Pond DP-1. <br />Refuse pond RP-2/3 was inspected. The lowest cell was dry with the side cells drying up. <br />SDH#1, SDH#2 and SDH#3 sites were visited. SDH#1 is sealed and reclaimed. Powerline, powerpoles and a <br />concrete slab remain at the SDH#1 site. <br />Ditches through out the facilities look fair, with some of the ditches recently being cleaned of sediment. <br />Continued maintenance of the ditches is recommended prior to the winter months. <br />PROCESSING WASTE/COAL MINE WASTE PILES - Rule 4.10 and 4.11 <br />[]Drainage Control; Surface Stabilization; Placement: <br />Refuse piles were inspected. The winter storage pile located on the south end of Refuse Pile No. 4 has <br />been graded out. It appeared that a small portion may still need to be compacted, but no more remains to be <br />spread. BME is currently utilizing Refuse area 2/3 for end dumping of coal refuse prior to spreading. Site is dry. <br />No problems were noted at the refuse piles. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: <br />Page 2 of 6