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November 17, 2010 C-1981-018/Deserado Mine JHB <br />marked with a survey stake. <br />Pond DP-1 was holding water approximately a foot bellow the lowest weep hole. The operator has a pump in the <br />pond to re-circulate the water for mine operations. We discussed seeding the drainage ditch repairs This fall when <br />the haul road berms are seeded with temporary stabilization seed mix. <br />HRB3, HRB4, and HRB5 are small area exemptions along the main haul road. Sediment is controlled by berms <br />along the perimeters, grading and small sumps. These structures were in place and functional. No problems were <br />noted on these small storage areas (HRBs). <br />PROCESSING WASTE/COAL MINE WASTE PILES -Rule 4.10 and 4.11 ? ?Drainage Control; Surface <br />Stabilization; Placement: <br />Refuse pile 5A has begun to store refuse during winter conditions on South end of pile. Most of RDA5-A <br />has been graded and appears to be compacted. Only a very small amount of puddled water (ice) was observed at <br />the South end the RDA. RDA 4/3/2 (combination) is graded and has a few end dumped piles towards the NW <br />portion of the pile. Grading has begun to establish slope to the south. Additional storage still exists in this pile. <br />ROADS - Rule 4.0311 ? Construction 4.03.1(3)/4.03.2(3)0 ? Drainage 4.03.1(4)/4.03.2(4)0 ? Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6)? ?Reclamation 4.03.1(7)/4.03.2(7): <br />Rio Blanco road No 69 was in the process of being graded during the inspection. Grading was occurring <br />in the area that LW panel 11 undermined the roadway. No visible sign of subsidence of the road was observed. <br />Access roads and Haul roads within the permit area were in good condition. BME continues to dress up the <br />roadside ditches as needed. <br />REVEGETATION - Rule 4.15 ? ? Vegetative Cover; Timing: <br />BME has not seeded yet this fall. The operator indicated that BME plans to conduct seeding within the <br />next week or so. Areas planned for seeding include berms that had been worked on during summer 2010, Subsoil <br />stockpile near RDA5, RS3 pad and access road, and slope above DP-1. Several exploration holes and reclaimed <br />drill holes may be ready for seeding this fall too. <br />SUBSIDENCE - Rule 4.20: <br />Warning signs regarding subsidence on the county roads were in place and were in acceptable. <br />SUPPORT FACILITIES - Rule 4.04: <br />. RS-3 shaft has been sealed, graded, ripped, access road ripped. Site & access road still require seeding. <br />operator anticipates seeding will occur this fall. <br />SIGNS AND MARKERS - Rule 4.02: <br />Mine id. signs were present along county road 69 entering from North, and Rio Blanco County road <br />entering permit area from the west. These signs are appropriate and contain the required information. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 6