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January 18, 2012 C -1982- 056 /Foidel Creek Mine JDM <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />R - Reclamation Success <br />R - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />Y - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />NA - Support Facilities Not On -site <br />R - Other <br />NA - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and <br />Gullies 4.14.6: <br />Backfilling and grading operations were being conducted as part of the Fish Creek tipple reclamation. Two D6 <br />dozers, a scraper, tracked excavator, and a heavy equipment oil truck were on site conducting reclamation <br />operations. Backfilling and grading operations were in the initial stages with no problems noted. It is estimated <br />that backfilling and grading operations will be completed within two weeks depending on weather conditions. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10, Diversions 4.05.4, Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The 16 LT pad is permitted as an SAE site. Ditch construction and rock filters have been completed and snow - <br />covered at the time of the inspection. Gravel base was laid down on site at the 16 LT pad . No problems were <br />noted. <br />The erosion gullies on the 6MN sediment pond has been addressed. The slope of the southern embankment was <br />graded to a less steep slope to help prevent runoff from the upper pad to the pond. <br />The relief drain at the 6MN storage pond, permitted in MR256 has been completed. <br />GENERAL MINE PLAN COMPLANCE: <br />The Foidel Creek mine has begun the initial stages of a longwall miner move from the 17RT longwall panel to the <br />16 LT long wall panel. The move is estimated to take approximately two weeks to complete. Construction <br />continues on the 16LT utility borehole. Reclamation activities are ongoing at the Fish Creek Tipple site. One <br />— 120 car coal train was in the process of loading at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />