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May 12, 2011 C-1981-018/Deserado Mine JRS <br /> PROCESSING WASTE/COAL MINE WASTE PILES—Rule 4.10 and 4.11 Drainage Control; Surface <br /> Stabilization;Placement: <br /> -Deserado has contracted to have the refuse stockpile that is on pile RP-5a spread and compacted. The contractor <br /> mobilized in two tractor-towed scrapers and farm tractors on the morning of 12 May 2011 to complete the work. <br /> This is earlier in the year than Deserado usually spreads and compacts the refuse. Care must be taken to ensure <br /> that the refuse is dry enough to get good compaction and that the farm tractors provide adequate compaction for <br /> the refuse. If necessary,Deserado will need to perform additional compaction with their compactor. <br /> ROADS—Rule 4.03 Construction 4.03.1(3)/4.03.2(3)Drainage 4.03.1(4)/4.03.2(4)Surfacing and <br /> Maintenance4.03.1(5)and(6)/4.03.2(5)and(6)Reclamation 4.03.1(7)/4.03.2(7): <br /> -The mine entrance road is a paved road. The road was well maintained and stable. <br /> -The haul road to the refuse pile was well maintained and stable at the time of the inspection. There were no ruts <br /> or erosional problems noted on the road. <br /> RECLAMATION SUCCESS -Rule 4.15,Rule 3: <br /> The main focus of this inspection was to look at the progress of the reclamation of some of the drill pads and other <br /> locations at the Deserado Mine. <br /> -The East Portal area was stable and well vegetated at the time of the inspection. There was some very minor <br /> rilling on approximately the first 1/4 of the mine site,along the former haul road cut slope(the first quarter as you <br /> enter the site from the east). The backfilled portals area was stable with no settling, slumping or cracking noted in <br /> the backfill. The entire site is well vegetated, with a strong shrub component evident,especially on the west half <br /> of the site. Besides the minor rilling noted,there were no erosional problems noted on the site. <br /> -The reclaimed water line corridor, which runs along Rio Blanco County Road 65 from the raw water lagoon to <br /> the water tank bench,was stable and well vegetated. No erosional problems were noted in the reclamation. With <br /> the placement of the new line,this reclamation is final,as the permit calls for the water line to remain buried. <br /> -Methane degas well LW11-1 exhibited very good reclamation. The site was well vegetated and stable and no <br /> erosional problems were noted. There was very little cheatgrass noted on this pad site. This pad blends in well <br /> with the surrounding terrain. <br /> -Methane degas wells LW10-1, 2 and 3 were all well vegetated and stable, with no erosional problems noted. <br /> There was some cheatgrass present on these sites,especially LW 10-3. Overall,these three pads blend in well with <br /> the surrounding terrain. The road spur that was constructed to access these holes/drill pads was also well <br /> vegetated and stable, with no erosional problems noted on the reclaimed road. <br /> -Methane degas well LWB9-2 was stable. The site was blended in well with the surrounding terrain and no <br /> erosional problems were noted. This site was reclaimed in 2009 and exhibited good vegetative cover. Scott <br /> indicated that there was a large amount of Russian Thistle on the pad last year and that he had sprayed it. The road <br /> leading to this pad was an"undisturbed"two-track. <br /> -The drill pad for hole SC-HG30 was blended in well with the surrounding terrain and stable. The drill site was <br /> reclaimed in 2010. There appeared to be good germination,with a lot of grasses starting to grow. There was no <br /> erosion noted on the pad at the time of the inspection. <br /> Number of Partial Inspection this Fiscal Year: 8 <br /> Number of Complete Inspections this Fiscal Year: 3 <br /> Page 3 of 8 <br />