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May 9, 2012 C- 1980- 007/West Elk Mine <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R °Cornments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - 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 />R - Other <br />N - Special Categories Of Mining <br />R - Processing Waste <br />N - Topsoil <br />COMMENTS <br />JRS <br />This was a partial inspection of the West Elk Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. Robin Schiro and Mike Peacock accompanied me in the morning and Robin <br />Schiro and Alex Crane (a summer intern) accompanied me in the afternoon. The mine was actively producing <br />coal and loading a train. The weather was wane and sunny and the ground was mostly dry. <br />Prior to the inspection, I met with Kathy Welt, Weston Norris and Robin Schiro regarding current and future <br />permitting actions. We discussed the upcoming permit revision for the area south of the current permitting, a <br />technical revision for methane degas wells for panel E -4, a near - future technical revision to change /update the <br />mine's hydrologic and subsidence monitoring plans and the completeness and review of Technical Revision 128. <br />We also briefly discussed the e- permitting pilot project and the West Elk permit document reformat. <br />The new West Elk Mine permit document, from Permit Renewal 06, was hand delivered during the inspection. <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 (below the Sylvester Gulch Facilities area) contained some water but appeared to be drying out. The <br />pond embankment was well vegetated and stable and no erosional problems were noted. <br />- Freshwater Ponds FW -1 and FW -2 were both basically full at the time of the inspection. Both pond <br />embankments were stable and no erosional problems were noted. The overflow spillway for both ponds was a <br />grouted, riprapped channel. Both spillways were stable. <br />- The RPE ponds both contained a small amount of water and were not discharging at the time of the inspection. <br />Both pond embankments were well vegetated and stable, with no erosional problems noted. <br />- The NSSA pond was dry at the time of the inspection. The pond embankment was well vegetated and stable and <br />no erosional problems were noted. <br />Number of Partial Inspection this Fiscal Year: 11 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 14 <br />