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02/03/2011 THU 14:13 FAX 17198450077 NOW Elk Coal <br />New Elk Mine <br />QUARTERLY COAL. WASTE BANK INSPECTION REPORT <br />CDMR Rules 4.09.1 (11) and 4.10.2(2) <br />Mine: NEW ELK <br />Waste Bank MSHA ID. No.: Develo meet Waste Disposal Area <br />Inspection Period: Second Quarter 2010 <br />Inspection Date: 5/12/2010 <br />General Description or Reference to Site Plan: <br />The Development Waste Disposal Area is located south of State Highway 12 and west of <br />the main facility Access Road. It is adjacent to and north of the Middle Fork of the <br />Purgatoire River. The area has been used for disposal of waste rock from the underground <br />mine. Since mine closure In 1989, the area has been used for disposal of sediment removed <br />from ponds and ditches located within the mine permit area. <br />Activity During Inspection: <br />The area was idle during the inspection. The DWDA Is In final reclamation. <br />Typical spring conditions prevail with early season grasses establishing growth. Minimal precipitation <br />during first months of 2010 has resulted in fairly dry conditions. Site is in good condition with <br />no problems observed. <br />Drainage: (Discussion of springs, seeps, overland and channel flow, underdrain construction and/or <br />discharge, Integrity of 100-year 24-hour drainage structures, and evidence of positive drainage). <br />Positive drainage is maintained on the surface of the DWP. No evidence of springs nor seeps <br />was observed. <br />Observation of Fill Construction: (Description of material, compaction, lift thicknesses, slopes, <br />and construction methods). <br />Fill construction has been completed. Reclamation of the surface has been completed. <br />0003/017 <br />Pages 1 of 2