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February 9, 2012 C- 1980- 007/West Elk Mine JRS <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 />R - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />R - Slides and Other Damage <br />N - 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 />N - Support Facilities Not On -site <br />NA - Other <br />N - Special Categories Of Mining <br />R - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a complete inspection of the West Elk Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. Robin Schiro of Mountain Coal accompanied me on the entire inspection, Mike <br />Peacock accompanied us on the inspection of the RPEE area and Kathy Welt was present for the records check. <br />The mine was actively producing shipping coal. They were not generating any refuse, as they are in a good part of <br />the coal seam. The weather was cold and intermittently snowing and the ground was covered in most places with <br />several inches of snow. <br />Prior to the inspection I met with Kathy Welt, Robin Schiro and Weston Norris to discuss upcoming revisions. <br />These revisions include the technical revision for the ST -02 and RPEE slide mitigation and the permit revision for <br />new permit area and mining south of the current permit boundary. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />- All of the necessary records were available for review in Kathy Welt's office. The majority of the compliance <br />records are contained in a binder for review. Please see the Availability of Records form at the end of this <br />inspection report for more detailed information. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8, <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />- Pond SG -1 was covered with snow but appeared to contain some water. The pond was not discharging at the <br />time of the inspection. The pond embankment appeared to be stable and no erosional problems were noted. The <br />flow meter at the pond outfall was recently replaced. <br />- The mine water treatment ponds in Sylvester Gulch contained water but were not discharging. The pond <br />embankments were covered with snow but appeared to be stable. No erosional problems were noted. <br />- Pond MB -3 contained water approximately one foot below the principle spillway pipe and was not discharging at <br />the time of the inspection. The embankment was well vegetated and stable and no erosional problems were noted. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 8 <br />