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April 14, 2011 C- 1981 - 022 /Elk Creek Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />• -Air Resource Protection <br />• -Availability of Records <br />N - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />N - Explosives <br />Y - Fish & Wildlife <br />Y - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />INTRODUCTION: <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />N - Signs and Markers <br />Y - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Mike Boulay of the Colorado Division of <br />Reclamation, Mining and Safety on April 14, 2011. Jim Kiger, Environmental Manager for Oxbow Mining, LLC <br />was present during the entire inspection. Weather conditions were cloudy and cool. Ground conditions were <br />damp from precipitation earlier in the day. The longwall was operating and the mine was conveying coal to the <br />stockpile at the time of the inspection. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization, Placement: <br />Both the II West and West Valley refuse disposal areas were inspected and no problems or areas of concern were <br />identified. The upper level of the II West Coal Refuse facility was recently compacted. Jim Kiger indicated that <br />work was beginning to extend the under drain further upslope to extend the refuse pile at the II West Facility <br />within the permitted refuse disposal area (see attached Photograph No. 1) <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 />The West Valley and II West Haul Roads, and the haul road leading to the mine facilities were inspected and all <br />were found to be in good condition. The facilities area was wet and muddy in some locations but all areas were <br />well maintained. The East Yard Road and Old Highway 133 were well maintained. The gate was locked to the <br />back entrance to the mine site. The Pond E Light Use Road was recently re- graded and was wet but passable. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 5 <br />