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September 20, 2011 C- 1981 - 022 /Elk Creek Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />Y - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />R - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />INTRODUCTION — <br />This was a complete inspection of the Elk Creek Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation, Mining and Safety on September 20, 20 1. The focus of this inspection was the <br />reclaimed Bear Creek Cut - across Road while the vegetation was at its peak and weather conditions were still <br />favorable. The Bear Creek cut - across access road, reclaimed last fall, connected the Bear Creek Road and the <br />ridgeline road to the east between Bear Creek Canyon and Hubbard Creek Canyon. The reclaimed road is about <br />1.5 miles long, ascends 350 feet and is oriented roughly North/ South following the contour of the mountain. Jim <br />Kiger, Environmental Manager for Oxbow Mining, LLC ( OMLLC) was present during the entire inspection. <br />Weather conditions were sunny and warm and the ground conditions were damp. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />A large amount of coal was stockpiled at the site and the coal stacking tubes were in operation during the <br />inspection. There were no signs of fugitive dust onsite or off. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked on the afternoon of 9/20. All records were on file and available <br />for review at the OMLLC office. The records are organized and easily accessible and no problems were noted <br />with the records review. See the attached Availability of Records checklist. <br />BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.143; Stabilization of Rills and Gullies 4.14.6: <br />The reclaimed Bear Creek road was back filled to AOC and appears to be stable (photo 1). No cracks or <br />slumps were visible for the entire length of the road. Four gob vent bore hole pads were also reclaimed along with <br />the access road. Two of the GVB casings (GVB 9 -04 & 11 -02) were sticking above the backfill and need to be cut <br />off (photo 2). <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 8 <br />