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September 12,2011 C-1982-057/Seneca 11-W Mine SLB Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable NA -Air Resource Protection R -Roads R -Availability of Records Y -Reclamation Success R -Backfill &Grading R -Revegetation NA -Excess Spoil and Dev.Waste NA - Subsidence NA -Explosives R - Slides and Other Damage R -Fish &Wildlife Y - Support Facilities On-site R -Hydrologic Balance R - 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 R -Topsoil COMMENTS This was a complete inspection of the Seneca IIW Mine conducted by Susan Burgmaier or DRMS. Roy Karo and Dennis Bugay were present during a portion of the site inspection. Weather conditions were clear and dry,with afternoon rain showers. AVAILABILITY OF RECORDS—Rule 5.02.4(1): Records were inspected at the Sage Creek Mine office and the Seneca Coal Company office. All required records were available and up to date; inventory of records is attached. BACKFILL and GRADING—Rule 4.14 Contemporaneous Reclamation 4.14.1;Approximate Original Contour 4.14.2;Highwall Elimination 4.14.1(2)69; Steep Slopes 4.14.2, 4.27;Handling ofAcid and Toxic Materials 4.14.3; Stabilization ofRills and Gullies 4.14.6: Several postmining drainage channels were walked and closely inspected. 005 Gulch was in excellent condition. NE4 and NE1 were in good condition;there were a few gullies around the channel,but no significant problems were observed. 006-NE2 needs to be reworked where the rip rap has slid down the Mirafi channel liner. 006 Gulch was in good condition between the Ridgeline Road and Pond 006,but needed to be maintained upgradient of the Ridgeline Road and right at the entrance to Stock pond T5. PM-IA was in poor condition as a result of heavy rainfall in July; most of the rip rap in the drainage was dislodged and dumped into the surge ponds and stock pond. Channels 2C, 21), and 2E were all in need of maintenance and in some areas reconstruction, also as a result of July storms. There is an unnamed channel on the north/northeast side of the oil well pad that has been lined with TRM. There is a gully below the point where TRM lining ends (where the channel meets the fence line above the well pad on the steep pad inslope)that needs to be repaired. FISH and WILDLIFE Rule 4.18: Number of Partial Inspection this Fiscal Year: 5 Number of Complete Inspections this Fiscal Year: 1 Page 2 of 10