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November 17, 2011 C- 1981 - 019 / Colowyo Coal Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />Y - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection conducted by Janet Binns of CDRMS. Matt Guptill of Colowyo Coal Company <br />accompanied the initial portion of inspection. Mid - morning on Wednesday, Chip Brown continued the inspection. <br />The mine is an active surface mine with two active pits; West pit and South Taylor pit. The weather was cold and <br />dry. There was thin snow cover, approximately 2 -3 inches of windblown snow throughout much of the site. CCC <br />has completed reclamation grading and topsoil placement for the 2011 Reclamation plan. The second day of the <br />inspection was very windy. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />Grading of the X -pod area was complete. Construction of the southern collection ditch in the X -Pod was complete. <br />The graded slopes blend in well with the native area and follow the approved PMT contours. Slopes were not <br />measured during this inspection. <br />West Pit grading for the 2011 reclamation parcel has been completed. The 102 dragline is being used to backfill <br />the areas that will be included in the 2012 reclamation block. Grading is commencing on the north side of the <br />west pit reclamation area and south of the West Pit fill. CCC is covering over a portion of the non -coal waste <br />disposal area (landfill), and is continuing to tie this northern parcel into the 2011 and 2010 West Pit reclamation <br />parcels. CCC plans to start grading the South west side of the West Pit Fill. CCC will move an existing substation <br />and remove a powerline currently running along the west side of the west pit fill. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 10 <br />