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December 20, 2010 X-2010-233-00/Lorencito Bulk Coal Sample KAG <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 N - Roads <br />N - Backfill & Grading R - Reclamation Success <br />N - Fish & Wildlife N - Revegetation <br />N - Hydrologic Balance N - Slides and Other Damage <br />N - Gen. Compliance With Mine Plan N - Signs and Markers <br />N - Other N - Topsoil <br />COMMENTS <br />Reclamation Success <br />Three drill sites were permitted in Lorencito Canyon. All were permitted along existing roads. The operator chose <br />to drill three holes on only one of the sites, site #2, located in Alamosa Canyon about 800 feet upstream of the <br />confluence with Lorencito Canyon. Inspection of the site revealed no obvious disturbed or reclaimed area. The <br />final reclamation report indicates no lands other than what has previously been disturbed by the roadway itself were <br />affected. <br />All necessary reports have been filed and reviewed by the Division. Based on this inspection, bond release is <br />recommended. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 3