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General Description or Reference to Site Plan: <br />Activity During Inspection: <br />No problems observed during the inspection. <br />New Elk Mine <br />QUARTERLY COAL WASTE BANK INSPECTION REPORT <br />CDMR Rules 4.09.1(11) and 4.10.2(2) <br />Mine: NEW ELK <br />Waste Bank MSHA ID. No.: Development Waste Disposal Area #2 <br />Inspection Period: Third Quarter 2011 <br />Inspection Date: 8/29/2011 <br />The Development Waste Disposal Area is located south of State Highway 12 and east of <br />the main facility Access Road. It is adjacent to and north of the Middle Fork of the <br />Purgatoire River. The area is used for disposal of waste rock from underground mining and <br />and disposal of sediment from ponds and ditches located within the mine permit area. The <br />Facility was recently permited and approved by DRMS as part of the mine reopening. <br />Refuse placement has begun with disposal to date consisting of development waste from the <br />Allen mine placed and compacted in one foot lifts. Late summert conditions prevail with minimal <br />precipitation received this year. <br />Drainage: (Discussion of springs. seeps, overland and channel flow, underdrain construction and /or <br />discharge, integrity of 100 -year 24 -hour drainage structures, and evidence of positive drainage). <br />Positive drainage is maintained on the surface of the DWP. No evidence of springs nor seeps <br />was observed. <br />Observation of Fill Construction: (Description of material, compaction, lift thicknesses, slopes, <br />and construction methods). <br />Coarse to fine - grained development waste rock has been placed according to approved plans and <br />compacted. Compaction testing was done by CTL- Thompson on August 29, 2011demonstrating that <br />refuse placement has been conducted in accordance with plan requirements. <br />Page 1 of 2 <br />