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October 19, 2011 C- 1981 - 035 /King Coal Mine MLT <br />• At the West pond, water covered an estimated 20 percent of the pond floor, at the north end, <br />adjacent to the embankment. This pond is also equipped with a staff gauge. The outer slopes <br />of the pond embankment are well vegetated; the top surface and inside slope are less <br />vegetated. The emergency spillway was clear and intact. <br />• The sediment pond at King II was empty, but the bottom was still wet. Mr. Jarvis said this <br />pond received quite a bit of runoff during the previous precipitation event, which brought the <br />water level higher than it had been at any time during this season. With the dry, sunny <br />conditions, however, the water had evaporated and /or infiltrated the ground below. <br />• Two new culvert pipes had been installed in the facilities area at King 11. The first was <br />installed to enclose the collection ditch located against the hillside immediately east of the oil <br />storage shed. The second has been installed below the rock dust silo, in an area that will <br />eventually be paved over with concrete. <br />• During the August 2011 inspection, we observed a flow of water, unchecked, running down <br />the slope from the water storage tank. A two -inch line has since been installed, to carry the <br />back - flushed water safely down the slope, without causing erosion. <br />• The irrigation ditch, from which water is drawn to fill the tank at King H, was shut off on <br />October 1st. The mine is once again hauling water from Durango. This practice will <br />continue until water is available in the irrigation ditch next spring. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3) / 4.03.2(3); Drainage 4.03.1(4) / 4.03.2(4); Surfacing and Maintenance <br />4.03.1(5) and (6) / 4.03.2(5) and (6); Reclamation 4.03.1(7) / 4.03.2(7): <br />• The roads at King I were graded, and allowed easy access through the facilities and portal <br />area and up onto the refuse pile. The roadway surface showed no unusual erosion, and the <br />surface drainage appears to be good. <br />• The haul road at King II was in good condition. The surface was dry, and compacted <br />sufficiently well that the breezy conditions were not generating fugitive dust. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />• At King I, nearly all of the debris from demolition of the various facilities has been removed <br />from the site. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 4 <br />