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February 9, 2012 C- 1980- 007/West Elk Mine JRS <br />HYDROLOGIC BALANCE (cont): - The freshwater ponds FW -1 and FW -2 were both full at the time of the <br />inspection. There was no water flowing out of either pond overflow. The pond embankments were covered with <br />snow but appeared to be stable, with no erosional problems noted. <br />- The RPE ponds were basically dry at the time of the inspection. The embankments were covered with snow but <br />appeared to be stable. <br />- All of the roadside ditches along the mine entrance road, the Sylvester Gulch road and around the coal stockpile <br />areas contained snow but appeared to be working as designed. There was visible flow in some of the ditches and <br />no flow was observed outside of any of the ditches. <br />GENERAL MINE PLAN COMPLANCE: <br />- The operator was mining in E -Seam in longwall panel LWE -3. They were at approximately cross -cut 47. The <br />development mining was working in the panel LWE -4 headgate and was at approximately cross -cut 70. <br />Development work has also advanced in the panel LWE -5 headgate to approximately cross -cut 5. Finally, <br />Mountain Coal has developed the south mains to the beginning of the panel LWE -6 headgate. All of the mining <br />and development was on the current operations map in the basement of the main office building. This inforination <br />matches the mining sequence shown on approved Map 51 - E -Seam Projected Operations (last updated on 14 <br />February 2011 with the approval of Technical Revision 124. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Stabilization, Placement: <br />- The operator was not producing any refuse at the time of the inspection. They were mining in a good part of the <br />E -Seam and coal was not being washed. There is, however, a large stockpile of refuse on the surface of the RPE <br />that needs to be transported to the RPEE. The RPE appeared to be stable and well graded at the time of the <br />inspection. There was no water pooling on the surface of the pile. The outslopes were covered with snow but <br />appeared to remain stable. <br />- The operator was not yet placing refuse material on the RPEE at the time of the inspection. They have <br />completed the construction of the Phase IA buttress and were just completing the finishing work on the inslopes of <br />the Phase IA colluvial fill. An excavator and dozer were pulling the slopes back to their designed slope of 1:1. <br />There is a fairly large "hole" behind the colluvial fill that will be filled with refuse prior to beginning to place the <br />refuse on the pile in lifts. The operator plans to either end dump the refuse into the hole, dump the refuse beside <br />the hole and push it in with a dozer or some combination of the two methods. Once the material has either been <br />end dumped or pushed into this hole, it will be spread and compacted in lifts of no more than 24 ". The operator <br />will complete the ditch below the pile as conditions permit. This will include laying a clay liner and placing riprap <br />into the ditch. They will take interim measures to protect the ditch, such as placing hay bales in the ditch and <br />leaving rock check dams that are currently in place. These interim measures should be fine, since all possible <br />runoff will be treated by the RPE ponds prior to discharge. <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />- The mine entrance road is a paved road to the office building. The road was well maintained and stable. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 8 <br />