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September 21, 2011 C- 1981 - 010 /Trapper Mine RDZ <br />Deal. All of the ponds contained water, but none of them were discharging. <br />No serious problems were identified with any of the ponds. The following maintenance items were identified <br />during the inspection: <br />East Pyeatt 41 needs to have sediment removed. <br />The dozer basins in Oak Gulch need to be cleaned. <br />The channel below the East Pyeatt ponds has been repaired and banks appear to be stable. At the pen boundary <br />below this construction, there was no sign of large amount of sediment being washed off site. <br />The erosion in Middle Flume (noted in earlier reports) was under repair during the inspection. <br />GENERAL MINE PLAN COMPLANCE: <br />The mine was found to be in general compliance with the pennit. <br />The following mining activities were observed: <br />• In F Pit, no draglines remain, but coal is still being mined from the Q seam, both north and south of the <br />recently constructed dragline bridge (F27 cut per Billy Nicholson). <br />• In the large slide area (2006 slide in G Pit area) heavy equipment was building a new road: the K3 road is <br />almost complete. <br />• The Queen Anne dragline was moving overburden in the Z Dip pit, and dozers were nearby working on <br />the pad and grading the slope above the dragline. <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 />Many roads were observed during the inspection, and all were stable and were functioning as permitted at <br />the time of the inspection. The access road to the Oak Gulch ponds was no longer washed out at the crossing of the <br />stream. <br />Several ditch -outs were inspected along the Life -of -Mine Road, and no significant erosion or other problems were <br />observed. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />Thistle was observed below the Horse Gulch pond. A tamarisk was observed near the channel repairs in <br />Middle Flume. <br />Rills previously observed on the reclaimed slope north of the Ash Pit were covered by vegetation, and apparently <br />are healing. <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 10 <br />