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August 23, 2011 C -1981- 035 /King Coal Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />Y - Roads <br />R - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the King Coal Mines I and II, conducted by Marcia Talvitie of <br />the DRMS. The inspection commenced at 10:45 a.m. and concluded at 12:45 p.m. Mr. Jim <br />Jarvis was available to represent the operator throughout the inspection. Mr. Jose Madera, from <br />the GCC Tij eras, NM office, was on -site to conduct an internal environmental audit. Mr. <br />Madera participated in the inspection of the King II facilities. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />A new filter for particulate matter has been installed on the rock dust silo at King II. This <br />equipment is incorporated into the emissions permit (issued by the CDPHE Air Pollution <br />Control Division) for the facility. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />The volume of Coal Mine Waste hauled from the King II Mine, which is currently active, <br />and dumped at the King I permit area, continues to grow. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />• Mr. Jarvis said the area had received 0.3 inches of precipitation during the preceding <br />weekend. Even so, the West Pond at King I was dry and the East pond held only a shallow <br />pool of water. The pond at King II was also dry. <br />• Installation of the King 11 water supply system is now complete. Irrigation water is pumped <br />from a ditch in Hay Gulch to the storage tank at the upper bench of the King II facilities. The <br />water is filtered before it enters the tank. When the filter becomes clogged, it back - flushes <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 Page 2 of 4 <br />