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December 28, 2010 C- 1981- 041/Roadside Portals MPB <br />The CRDA waste disposal sites (CRDA -1 and CRDA -2) were dry and stable, diversions and perimeter ditches <br />appeared functional. The temporary coal mine waste storage area atop the CRDA -1 pile has been fully reclaimed. <br />The coal waste was placed and compacted in the upper portion of the road that was left open for access to the top <br />of the pile. The upper portion has now been fully reclaimed. The waste pile footprint was backfilled and graded, <br />the cover material was replaced on the disturbed area atop the CRDA -1 pile, perimeter terrace ditches were <br />restored and stabilized, and the site was recently seeded and mulched. The former temporary coal waste storage <br />and handling area located atop CRDA -1 is shown in attached Photograph No. 1. Adequate drainage has been <br />restored and the site looks very stable with no erosion or other problems identified. <br />ROADS — Rule 4.03 <br />-Construction 4.03.1(3)/4.03.2(3) <br />- Drainage 4.03.1(4)/4.03.2(4) <br />- Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) <br />- Reclamation 4.03.1(7)/4.03.2(7): <br />Roads were dry and in good condition. The entire mine site including the North and South Portals, 2 -West Portals, <br />Coal Creek access and associated facilities, and the UTL were all accessible and all locations were inspected. <br />Final bond release is pending at the UTL loop area with SL -7. The UTL area was included in the inspection since <br />the proposed decision for SL -7 has not yet been issued. Road ditches and road culverts were well maintained <br />throughout the various mine site locations and support facility areas. <br />SUPPORT FACILITIES - Rule 4.04: <br />The entire South Portal reclaimed area remains stable and in good condition. There were no signs of erosion or <br />instability. The facilities area including the former shop and warehouse on the upper bench and the fruit stand, <br />office and packing shed on the lower area were very well maintained. The fruit stand is closed for business so <br />there was no activity at the South Portal. A portion of the upper bench area with shop and warehouse is shown in <br />Photograph No. 2. The reclaimed non - active use areas above and below the access road to the upper bench remain <br />stable and in good condition. All perimeter locations at the South Portal were well maintained. <br />The North Portals area was inspected and no problems were noted during this inspection. Coal Creek was dry at <br />the time of the inspection. <br />At the UTL loop area, Halliburton was actively using the Cameo Sand Offloading Facility. Trucks were being <br />loaded with sand for transport off -site at the time of the inspection (see attached Photograph No. 3). Overall the <br />site appears to be very well managed and well kept. Further improvements of the site have been made in the area <br />of the former sewage lagoons and at the location of the new bentonite offloading and storage area. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 8 <br />