2011-08-23_INSPECTION - C1994082

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July 18, 2011 Inspection Topic Summary NOTE: Y= Inspected N =Not Inspected R=Cornments Noted NA - Air Resource Protection R - Availability of Records R - Backfill & Grading NA - Excess Spoil and Dev. Waste NA - Explosives R - F:ish & Wildlife R - Hydrologic Balance Y - Gen. Compliance With Mine Plan NA - Other NA - Processing Waste C- 1994- 082/Yoast Mine V= Violation Issued NA =Not Applicable R - Roads R - Reclamation Success R - Revegetation NA - Subsidence R - Slides and Other Damage NA - Support Facilities On -site Y - Signs and Markers NA Support Facilities Not On -site NA - Special Categories Of Mining R - Topsoil COMMENTS This was a complete inspection of the Yoast Mine conducted by Susan Burgmaier of DRMS. The purpose of the inspection was to evaluate the reclamation areas proposed for Phase II Bond Release in Seneca Coal Company's SL -3 bond release application. Sandy Brown and Brock Bowles of DRMS participated in the inspection, as did Christy Hulsman of OSM. Mark L. Stewart of Xcel Energy was present during the inspection of the North Pit area lands owned by Xcel; and Larry Kunckle (accompanied by Leon Meats) represented John Patrick at the pre- inspection discussion of the South area lands owned by John Patrick. Filimon and Mabel Salazar, adjacent landowners in the South area, were present during the pre- inspection discussion on the morning of July 19` Jay James represented Seneca Coal Company (SCC) and was present throughout the inspection. Portions of the permit area that are not included in the Phase II bond release request were inspected the afternoons of July 18 and 22, 2011. The North Pit area reclamation was inspected for the purpose of Phase II release on July 19, 2011, and the South area Phase II request area was inspected on July 20, 2011. The mine site was also photographed aerially on July 18, 2011. The photos were reviewed to supplement the ground inspection; selected photos are included in this report. Compliance records and permit documents were inspected at the Sage Creek Coal Company mining office on July 18, 2011. All required documents were available and current. Hydrologic records were inspected on the afternoon of July 21, 2011, and also found to be available as required. Ponds 010, 011, 012, 013, and 014 were inspected on July 18, 2011. Pond 014 was discharging a trickle of clear water. The embankment was stable and densely vegetated. Pond 013 was not discharging and was stable and well vegetated. Pond 012 was discharging clear water; the underdrain was flowing into the pond. Pond 011 was discharging clear water. Pond 010 was also discharging clear water and was stable and well vegetated. The Pond 013 area slide has not yet stabilized; the southern edge of the scarp had moved since the last inspection. The toe area of the slide was saturated and the water was flowing into Pond 013. The small seep and slide north of the major slide had also moved considerably since the last inspection and was Number of Partial Inspection this Fiscal Year: 0 Number of Complete Inspections this Fiscal Year: 1 Page 2 of 19 SLB