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August 31, 2011 <br />C- 1980 - 007 /West Elk Mine TAK <br />Fork that provides access to pond MB -5E, and a concrete -lined sediment sump next to the construction site of <br />stacktube ST -5 (former site of pond MB -2R). Pond MB -5E was built at the same location as former pond MB -5 <br />(which was the Bear Mine pond), and replaces removed pond MB -2R. Pond MB -1 has been converted to <br />freshwater storage and has been re -named pond FW -2. <br />No discharge was occurring at the two spillway culverts of pond MB -5E. MCC has applied to the Colorado Water <br />Quality Control Division for replacing outfall 004 (at the location where pond MB -2R was removed) with an <br />outfall at the outlet of the newly constructed pond MB -5E. This new two - celled pond contained pools of water. If <br />discharge from MB -5E becomes necessary before an outfall is approved at this location, the plan is to pipe water <br />from MB -5E to the existing 004 outfall. <br />Ditches next to roads throughout the Main Surface Facilities Area and in Sylvester Gulch appeared in good repair. <br />No discharge was occurring at the underground mine water pumping site in Sylvester Gulch (CDPS outfall 017). <br />GENERAL MINE PLAN COMPLANCE: <br />The areal extent of underground workings appeared to be in compliance with the approved mine plan <br />based on comparison of the on -site mining progress map (MSHA map) with the approved mine plan map (Map 51 <br />in the permit application). <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 ❑ Drainage Control; Surface <br />Stabilization; Placement: <br />No problems were found on the Refuse Pile Expansion (RPE). The top surface of the RPE was <br />dry and it slopes gently to the back of the pile where runoff would enter a ditch that goes to the RPE two -cell lined <br />pond. Some of the coal waste rock that was incorporated into lifts on the RPE prior to construction of the coal <br />processing plant are being excavated for running the material through the plant. Vegetation is developing on the <br />face of the RPE. Survey mirrors in are in place on the face. <br />Road construction for the RPE East (approved in TR -120) has resumed now that the ground is dry. A pioneer road <br />is in place and equipment was active in the slide area that was previously described in the DRMS inspection report <br />of July 14, 2011. There appeared to be no significant change in the slide area (other than re- grading by the <br />operator), compared to DRMS's most recent inspection on July 19, 2011. <br />Road surfaces were well- maintained in the Main Surface Facilities area and in Sylvester Gulch. No signs of <br />excessive erosion were found on road embankments. <br />ROADS — Rule 4.03 ❑ ❑ Construction 4.03.1(3)/4.03.2(3) ❑ ❑Drainage 4.03.1(4)/4.03.2(4) ❑ ❑ Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) ❑ ❑ Reclamation 4.03.1(7)/4.03.2(7): <br />Road surfaces were well - maintained in the Main Surface Facilities area and in Sylvester Gulch. No signs <br />of excessive erosion were found on road embankments. <br />Number of Partial Inspection this Fiscal Year, ending 6/30/12: 1 <br />Number of Complete Inspections this Fiscal Year, ending 6/30/12: 1 <br />Page 3 of 8 <br />