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February 23, 2012 C- 1981- 012/New Elk Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V =Violation Issued NA Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />Y - Support Facilities On -site <br />R - Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Binns of CDRMS. Mr. Bobby Steele accompanied the inspection <br />and represented the permittee, New Elk Coal Company, LLC. <br />The mine is an active underground mine. <br />The weather began snowing heavily during the inspection, accumulating approximately 2 inches per hour, with <br />limited visibility. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Quarterly Sediment Pond Inspection Reports were checked in the Trinidad Mine Office on 2/22. Sediment Pond <br />Inspection for all four quarters of 2011 were on file: <br />1st quarter pond inspections were conducted on March 10, 2011. <br />2nd quarter pond inspections were conducted on June 27, 2011. <br />3rd quarter pond inspections were conducted on September 30, 2011. <br />4th Quarter pond inspections were conducted on December 29, 2011. <br />Quarterly Refuse pile /Excess fill Inspection Reports were checked in the Trinidad Mine Office on 2/22. Sediment <br />Pond Inspection for all four quarters of 2011 were on file: <br />1st quarter fill inspections were conducted on March 10, 2011. <br />2nd quarter fill inspections were conducted on June 27, 2011. <br />3rd quarter fill inspections were conducted on August 29, 2011. <br />4th Quarter fill inspections were conducted on December 29, 2011. <br />New Elk Coal Company records are currently stored in Trinidad, approximately 35 miles east of the mine. Bobby- <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 8 <br />