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May 3, 2011 C- 1980 - 004 /McClane Canyon Mine MPB <br />housing was inspected. Another slab of rock has fallen since the last complete inspection conducted in March, <br />2011 (see attached Photograph No. 1). It does not appear that any damage has occurred to date but the DRMS is <br />concerned that the rock wall above the diversion is unstable and may eventually significantly damage the exhaust <br />fan housing. The intake of the drainage diversion has a grate and steel box protecting it and the most recent rock <br />fall did not impact the intake. To ensure compliance, MCM should mitigate this and develop and implement a <br />plan to stabilize the small section of canyon wall in the vicinity of the diversion culvert above the exhaust fan. <br />The shop area collection ditch that runs behind the warehouse had some accumulated sediment but generally was <br />well maintained. Chuck Silengo indicated that he would clean the ditch. The catchment basins for the large <br />diversions at the upper end of the portals area were all dry and well maintained. The mine was not discharging <br />water during the inspection. The sediment pond was containing muddy water at a level of 1 -2 feet below the <br />spillway. The silt fences located on the northeast side of the access road bridge and at the entrance to the road <br />accessing the subsoil and topsoil pile locations were properly keyed in and appeared functional. Site sediment <br />control features were in good working order throughout the site. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization, Placement: <br />The temporary coal waste pile area was inspected and found to be properly maintained. The clean water diversion <br />ditch around the waste pile and sediment storage area is in good condition and clear of sediment. The berm <br />around the waste pile is stable (see Photograph No. 2). <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 />Roads were maintained and in good condition throughout the site. Ditches and culverts were clear of sediment <br />and debris and functioning properly. <br />SUPPORT FACILITIES - Rule 4.04: <br />The shop, facilities, and office areas were well kept. Perimeter areas at these locations were maintained, and no <br />problems were noted at any of the various support facilities during this inspection. <br />TOPSOIL — Rule 4.06 <br />Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; Redistribution 4.06.4: <br />The topsoil stockpile and construction material stockpile are stable with no signs of erosion (see attached <br />Photograph No. 3). Vegetation is beginning to green up and appears to be fairly well established on the stockpiles. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 8 <br />