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October 26, 2010 C-1981-012/New Elk Mine JRS e? <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />N - Air Resource Protection R - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />R. - 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 />N - Other N - Special Categories Of Mining <br />R - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Elk Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. Bobby Steele of New Elk accompanied me on the inspection. The operator is in <br />the process of updating and repairing surface facilities in anticipation of restarting mining operations. The <br />operator was also working on development in the mine, as discussed below. The weather was clear, cool and <br />windy at the time of the inspection and the ground was dry. <br />EXCESS SPOIL and DEVELOPMENT WASTE - Rule 4.09 Placement; Drainage Control; Surface Stabilization: <br />- As stated in the introduction above, New Elk is currently doing some development work in the mine. They are <br />removing non-coal waste material (rock) from the mine. The waste is initially being stockpiled in a small pile just <br />west of the portal area, where it is placed by a shuttle car. It is then being transported to a temporary stockpile <br />west of the wash plant. The refuse is then being transferred to a conveyor to the refuse pile, where it is being <br />spread and compacted. This transfer to the refuse pile is a slow process, as the belt line is very small and the <br />material is being moved exclusively by a wheel loader at the refuse pile. The Division estimates that there is <br />approximately 2,500 cubic yards of material in the temporary stockpile. The Division is currently reviewing <br />Technical Revision 54, which is an update to the surface facilities. The amount of temporary refuse at the site will <br />also be evaluated as it relates to hauling this material to the refuse pile and the reclamation cost estimate. <br />- The refuse pile was active at the time of the inspection. New Elk, as stated above, was dumping and spreading <br />non-coal development waste on the pile with a loader. The refuse pile has some large gullies in the refuse on the <br />upper (north) edge of the pile. New Elk will need to grade these gullies to ensure the pile remains stable. All of <br />the material that washes out of the gullies flows into a sediment pond. <br />- New Elk has a temporary pond cleanings stockpile in an old coal stockpile area on the north side of the river just <br />east of the current guard shack. The Division estimates that there is at least 3,000 cubic yards of material in this <br />stockpile. The runoff from this area flows through a long culvert and into Pond 7. As with the non-coal <br />development waste pile discussed above, the Division will be evaluating this area with regards to the reclamation <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: I <br />Page 2 of 11 <br />