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January 11, 2012 C- 1981- 012/New Elk Mine JHB <br />ENFORCEMENT ACTIONS /COMPLIANCE <br />Infraction Number: CV2011007 <br />Inspection Date: November 16, 2011 <br />Date Issued: December 16, 2011 <br />Primary Topic: Excess Spoil & Dev. Waste <br />Secondary Topic: Hydrologic Balance <br />Tertiary Topic: Availability Of Records <br />Description: Failure to conduct surface coal mining operations only as described in the approved <br />application. Failure to have a copy of the third quarter 2011 refuse pile inspection report on file at the <br />mine office in Trinidad, CO. <br />Abatement 4: 1 <br />Abatement Due Date: 12/26/2011 <br />Abatement Description: Submit plan to restore the new underground development waste pile <br />( "DWDA ") to its approved design. <br />Abatement step 41: Complied with 12/26/2011 <br />Abatement 4: 2 <br />Abatement Due Date: 1/9/2012 <br />Abatement Description: Replace Culvert C -13. <br />Abatement step 42: complied with 11/28/2011. <br />Abatement 4: 3 <br />Abatement Due Date: 1/9/2012 <br />Abatement Description: Provide a copy of the third quarter 2011 certified refuse pile inspection <br />report at the mine office in Trinidad, CO. <br />Abatement Step 43: Complied with 1/04/2012 <br />NOV -CV- 2011 -007: Terminated 1/11/2012 <br />Infraction Number: CV2011008 <br />Inspection Date: November 16, 2011 <br />Date Issued: December 16, 2011 <br />Primary Topic: Gen. Compliance With Mine Plan <br />Secondary Topic: Topsoil <br />Tertiary Topic: <br />Description: Failure to have obtain Final Approval of a Technical Revision for surface coal <br />mining operations prior to their implementation. Failure to have salvaged topsoil prior to the construction <br />of two unapproved light use roads. <br />Abatement 4: 1 <br />Abatement Due Date: 1/9/2012 <br />Abatement Description: Remove unapproved fill and concrete culvert in drainage below Pond <br />008, south of State Highway 12. <br />Abatement step #1: complied with 1/11/2012 <br />Abatement 4: 2 <br />Abatement Due Date: 1/9/2012 <br />Abatement Description: Remove unapproved rock dam in drainage /ditch immediately east of new <br />underground development waste pile. <br />Abatement step 42: Complied with 1/11/2012 <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 5 of 10 <br />