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July 21,2011 C-1982-05'7/Seneca II-W Mine SLB Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable N -Air Resource Protection R -Roads N -Availability of Records N -Reclamation Success Y -Backfill&Grading R -Revegetation NA -Excess Spoil and Dev.Waste NA -Subsidence NA -Explosives Y -Slides and Other Damage N -Fish&Wildlife N - Support Facilities On-site R -Hydrologic Balance Y - Signs and Markers Y -Gen. Compliance With Mine Plan NA - '.Support Facilities Not On-site NA -Other NA - Special Categories Of Mining NA -Processing Waste N -Topsoil COMMENTS This was a partial inspection of the Seneca II-W Mine conducted by Susan Burgmaier and Rob Zuber of DRMS. Jay James represented Seneca Coal Company during the inspection of the South Extension Area. Weather conditions were sunny and warm; ground conditions were mostly dry. A monsoonal pattern in the area had been producing major thunderstorms in the afternoons and evenings, with significant rainfall. Between July 7 and 12, 2011, the operator reported 2.7 inches of rainfall at the nearby Seneca II Mine. The week of July 18th, there;were nightly rainfall events. HYDROLOGIC BALANCE -Rule 4.05 ❑Drainage Control 4.05.1, 4.05.2, 4.05.3;Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10;Diversions 4.05.4;Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13;Drainage—Acid and Toxic Materials 4.05.8;Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: Pond 005 was discharging clear water. The embankment was stable and vegetated,but noxious weeds and annual species(houndstongue,Canadian thistle,curlycup gumweed and prickly lettuce)were prevalent. Stocktanks T18,T20, and T22 all held.water. Ponds 016A, 016, and 017 were all discharging clear water. The spoil spring above Pond 016A was flowing;the operator provided a flow estimate on July 7,2011 of 141 gpm(pH 8.1,EC 2090). The drainage below the intersection of PM-4, 4A, -413, and 4C,where PM 10 crosses under LU4 had downcut considerably with recent storms. SCC needs to consider adding a structure to slow the velocity of runoff here before it exits the armored channel above the native drainage. The PM-4D drainage was in good condition,but the top section of the TRM is exposed and should be covered with fill at the edge of the road berm before runoff works its way under and peels off the TRM lining. The TRM channel and adjacent slide repair area were well vegetated,primarily with Western wheatgrass. The Pond 016 and 017 drainage areas had been extensively damaged with recent rains. Postmining Number of Partial Inspection this Fiscal Year: 1 Number of Complete Inspections this Fiscal Year: 0 Page 2 of 8