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June 22, 2011 <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />Y - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA - Other <br />NA - Processing Waste <br />C -1992- 080 /Carbon Junction Mine <br />COMMENTS <br />V= Violation Issued NA =Not Applicable <br />R - Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />NA - Topsoil <br />TAK <br />This was a complete inspection conducted by Tom Kaldenbach of DRMS. No one else was present. The <br />ground was dry and the site was fully accessible. Selected photographs taken during the inspection are <br />provided at the end of this report. <br />Bond release application SL -4 was recently partially approved, resulting in all of the site being approved <br />for Phase II bond release. None of the site has received Phase III bond release. The SL -4 findings <br />document explained that Phase III bond release requires in the reclaimed areas development on the <br />ground of the approved postmining land uses of industrial or commercial, or residential. The SL -4 <br />decision included a reduction in the minimum required inspection frequency to one complete inspection <br />per calendar quarter. That frequency will be implemented in the quarter beginning July 1, 2011. <br />The revegetation success criterion for the bond release area is 90 percent of the cover standard of 40 <br />percent, with 90 percent statistical confidence (permit application page 5 -36). <br />BACKFILL and GRADING — Rule 4.14 ❑ ❑ Contemporaneous Reclamation 4.14.1; Approximate Original <br />Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic <br />Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />Backfilling, grading, topsoil replacement, and revegetation has been completed in all areas (with the <br />possible exception of boreholes 94 -1 and 95 -1, which DRMS will research). Borehole 17 -B has been reclaimed <br />since the last complete inspection. Borehole 17 -B was located in Carbon Junction Canyon, immediately north of <br />the reclaimed North Pit. Topsoil stockpiles 4 and 7 are not regraded, but were approved as permanent features in <br />June 2010 (TR -16) based on their compatibility with the surrounding topography and previous achievement of the <br />required minimum replacement thickness of one foot of topsoil on reclaimed areas. <br />HYDROLOGIC BALANCE - Rule 4.05 ❑ El Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 8 <br />