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} <br /> April 6,2011 C-1981-018/Deserado Mine JRS <br /> HYDROLOGIC BALANCE (cont.) -Pond DP-1 contained water approximately two feet below the primary <br /> riser and was not discharging at the time of the inspection. The ditch from the processing plant bench to the pond <br /> was riprapped and stable. The emergency spillway is an open,riprapped channel, which was stable. The pond <br /> embankment was well vegetated and stable and no erosional problems were noted. <br /> -Pond SS-1 contained water approximately two feet below the discharge point and was not discharging at the time <br /> of the inspection. Several years ago Deserado removed tamarisk trees from the pond embankment. These trees <br /> have not come back. The pond embankment was well vegetated and stable and no erosional problems were noted. <br /> -Pond SS-2 was dry at the time of the inspection. The pond embankment was well vegetated and stable and no <br /> erosional problems were noted. <br /> -Pond PP-2 was full at the time of the inspection but was not discharging. This pond is an incised pond used for <br /> recycle water for the caol wash plant. The pond was stable. <br /> -The raw water lagoon was full and stable at the time of the inspection. Deserado has been upgrading the <br /> pumping system at the reservoir. <br /> -The roadside ditches along the haul road,entrance road and conveyor corridor were all clear and stable at the <br /> time of the inspection. No erosional problems were noted in the ditches. <br /> GENERAL MINE PLAN COMPLANCE: <br /> -Based on the current mining map,Deserado is mining in longwall panel LW-B 11. They have completed a little <br /> more than half of the panel at this point. Their development work has completed approximately 2/3 of the <br /> headgate for longwall panel LW-B 12. <br /> PROCESSING WASTE/COAL MINE WASTE PILES—Rule 4.10 and 4.11 Drainage Control; Surface <br /> Stabilization;Placement: <br /> -Refuse pile RP-1 has been reclaimed. The pile was well vegetated and stable at the time of the inspection. <br /> Deserado has repaired the fencing around the pile. The main reason the pile is fenced is to keep livestock grazing <br /> on the adjacent BLM land off of the pile and reclamation. <br /> -Refuse pile RP-2/3/4 was well graded and compacted at the time of the inspection. This pile is now the pile that <br /> is being actively used for refuse disposal. There were a few small areas that had water from the recent snow and <br /> rain but this was mainly confined to areas where there was heavy equipment tracking. There was no problem with <br /> standing water on the pile. There was several piles of rock from the rotary breaker waiting to be spread and <br /> compacted on the pile. Scott indicated that these rocks would be used to fill in a soft spot that has developed in the <br /> center area of the pile. The outslopes of the pile have some minor rilling but appear of be stable overall. The <br /> perimeter ditch around pile RP-2/3/4 was stable and well maintained. <br /> -Refuse Pile RP-5a was well graded and stable at the time of the inspection. This pile contains the refuse <br /> stockpile from the winter's refuse production. This refuse stockpile will be spread and compacted this summer <br /> once it dries out more. There was no water pooling on the pile. There were a few areas where there was gullying <br /> on the outslopes of the pile, adjacent to Pond RP-5a. This gullying will need to be repaired. The perimeter ditch <br /> around refuse pile RP-5a was stable and well maintained. The rock check dams were in place in the ditch as <br /> required. <br /> Number of Partial Inspection this Fiscal Year: 8 <br /> Number of Complete Inspections this Fiscal Year: 3 <br /> Page 3 of 6 <br />