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March 7, 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 =Not Applicable <br />R - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />R - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />R - Roads <br />Y - Reclamation Success <br />Y - Revegetation <br />Y - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R -Topsoil <br />COMMENTS <br />This was a complete inspection conducted by Janet Binns of CDRMS. Christine Belka of the Office of Surface <br />Mining and Enforcement, Denver Field Division, accompanied the inspection as a part of the Federal oversight <br />program. Ron Thompson, Mine Manager, represented New Elk Coal Company during the verification of records. <br />Bobby Steele, Surface Forman, represented New Elk Coal Company at the mine site, Apache Canyon air shafts, <br />and load out. <br />The weather was dry and breezy on the first day of the inspection. A storm moved into the area overnight <br />resulting in snow during the day on March 8th, with an accumulation of approximately 1 1/2 inches. The mine is <br />an active underground mine, with a wash plant at the mine site, and a train load out located approximately 30 <br />miles east of the mine in the town of Jansen. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />Both Apache Canyon north air shaft and south air shaft (map l la) were inspected. Both air shaft locations are <br />clearly marked with mine ID sign and disturbance area markers. Fencing around Apache Canyon South Air Shaft <br />remains intact and grounded. The South air shaft remains functional and venting (photo 2). The North air shaft <br />has been capped with a concrete cap. Sediment control on both shaft areas are controlled by SAES. No concerns <br />were identified with either Apache Canyon Air Shafts. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Mine records are stored at the New Elk Coal Company offices in Trinidad. The records are located in Ron <br />Thompson's office, Mine Manager. A copy of the approved permit needs to be stored and maintained at the mine <br />site as well. Records verification forma accompanies this report. <br />Notification of UG mining was sent to owners of structures on February 27, 2012. Pre - subsidence surveys have <br />not yet been conducted. NECC is working on conducting the surveys. Rule 2.05.6(6)(f)(v) <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 10 <br />