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February 23, 2011 C-1981-012/New Elk Mine 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 -Availability of Records N -Reclamation Success <br /> N -Backfill&Grading N -Revegetation <br /> N -Excess Spoil and Dev.Waste N - Subsidence <br /> N -Explosives N -Slides and Other Damage <br /> N -Fish&Wildlife N -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 /> N -Processing Waste N -Topsoil <br /> COMMENTS <br /> This was a partial inspection conducted by Kent Gorham of the Colorado Division of Reclamation, <br /> Mining, and Safety. I was unaccompanied on the inspection. Activities associated with rehabilitation of <br /> the mine site and the underground workings for future coal production continue. Ground conditions on <br /> this day were generally dry with patchy snow present only in shaded areas. The weather was clear and <br /> breezy with moderate temperatures for the late winter season. <br /> Hydrologic Balance <br /> Pond 1 appears to be ready for installation of the pond liner but at this time the liner has not been <br /> installed. The construction of the pumping apparatus on the east side of the pond appears complete and <br /> the pond embankment appeared normal and consistent with the design. <br /> The two large culverts under the main access road crossing the Purgatoire River have not been cleaned <br /> out as discussed in last month's inspection report. This work should be completed before the onset of <br /> spring snowmelt and runoff. <br /> Disturbed area runoff routing in the vicinity of ditch D20 and culverts C12 and C33 appears problematic <br /> due to the raised ramp area that extends from the East Portal to the southeast corner of the industrial <br /> building. The operator should ensure that ditches and culverts site-wide are in-place as approved in the <br /> drainage control plan. <br /> Drainage changes as approved under TR-54 have yet to be established on the ground. <br /> The operator was pumping water from the river cistern to the prep plant in anticipation of prep plant start- <br /> up. A small amount of coal has been removed from the Apache seam and is ready for processing. <br /> Overall,the site appeared in compliance with the approved plan. <br /> Number of Partial Inspection this Fiscal Year: 6 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 2 of 3 <br />