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September 2, 2011 C- 1981- 012/New Elk Mine DIH <br />GENERAL MINE PLAN COMPLANCE: <br />Development of the Allen and Apache seams is presently occurring, as is construction of the new Bates <br />Portal at the surface. Underground development waste from the mine was observed being transported via front - <br />end loader from the UG Development Waste Bin at the surface and being placed onto the Development Waste <br />Disposal Area (DWDA). The Bates Portal face -up has been completed. Three entries ( 41, 42, and 43) are being <br />constructed with a single continuous miner. Construction had advanced in all three entries to 50 -60 feet from the <br />face -up. One mobile fan was being used to ventilate two entries, and a second mobile fan was belong used to <br />ventilate the third entry. The prep plant was down for testing and maintenance. <br />New Bates Portal with three entries and two portable fans <br />OTHER (SPECIFY): <br />This was a partial inspection that began at New Elk Coal Company's office in Trinidad with Ron <br />Thompson, and continued at the mine site with Bobby Steele (New Elk Coal Company) and Terry Davis (TK <br />Mining). The weather was cool and cloudy. Evidence of a previous evening rain shower was visible in the form <br />of small occasional puddles of water throughout the mine site. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 4 <br />