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September 7, 2011 C- 1980- 007/West Elk Mine TAK <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection R - Roads <br />N - Availability of Records R - Reclamation Success <br />R - Backfill & Grading Y - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Tom Kaldenbach of DRMS. Ryan Sweetwater represented the <br />operator during the inspection. <br />Selected photographs taken during the inspection are attached to the end of this report. With the operator's <br />consent, this report was issued from the Denver office of DRMS. <br />The ground on the site was wet from recent rain showers. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and <br />Gullies 4.14.6: <br />The road and drill pad associated with reclaimed methane drainage wells on the ridge above Shaft 3 <br />(24HGxE3XC, 24HG1E4 -5XC, and 24HG2E5XC) are fully reclaimed and the holes are marked. This road and <br />these three MDW's are part of the SL -03 Phase I bond release request. Backfilling and grading blends well with <br />the surrounding undisturbed lands and approximates the original contour of the land. There were no signs of <br />excessive erosion or slope instability on the reclaimed area on the ridge above Shaft 3. <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 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage —Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Drainage has been adequately established on the reclaimed road and drill pad associated with the <br />reclaimed methane drainage wells on the ridge above Shaft 3 (24HGxE3XC, 24HG1E4 -5XC, and 24HG2E5XC). <br />Number of Partial Inspection this Fiscal Year, ending 6/30/2012: 3 <br />Number of Complete Inspections this Fiscal Year, ending 6/30/2012: 1 <br />Page 2 of 6 <br />