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October 5, 2010 C-1980-007/West Elk Mine TAK <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 N - Roads <br />N - Availability of Records R - Reclamation Success <br />R - Backfill & Grading R - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />NA - Other NA - Special Categories Of Mining <br />R - Processing Waste R -Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Tom Kaldenbach of DRMS. Ryan Sweetwood represented <br />the operator during the inspection. <br />Selected photographs taken during the inspection are attached to the end of this report. With the <br />operator's consent, this report was issued from the Denver office of DRMS. <br />The longwall was active near the east end of E-Seam Panel 2. The ground was dry. The entire site was <br />accessible. <br />BACKFILL and GRADING - Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />All surface disturbance and drillholes at the Deer Creek Shaft site that were completed under NOI X-2006-212-07 <br />have been replaced by development of the two shafts that was approved in TR-109. Reclamation liability that had <br />been created by NOI X-2006-212-07 was added to the reclamation cost estimate for permit C-1980-007 in the <br />approval of the Deer Creek Shaft in TR-109. Observations made during this inspection support a finding to <br />release the bond associated with NOI X-2006-212-07 that is for reclamation of the disturbance and drillholes at the <br />Deer Creek Shaft site. <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, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage - Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The perimeter ditches at the Deer Creek Shaft site were in good condition. Straw wattles in the ditch next to the <br />Number of Partial Inspection this Fiscal Year, ending 6/30/11: 3 <br />Number of Complete Inspections this Fiscal Year, ending 6/30/11: 1 <br />Page 2 of 6 <br />