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May 24, 2012 C- 1981- 012/New Elk Mine <br />I': <br />NECC is maintaining an adequate distance between the southern edge of the DWDA and the berm on the north <br />side of the Purgatoire River. <br />NECC was storing development waste material to the west of the approved raw coal storage area located between <br />ditch D 15 and D22. All runoff from this temporary storage is captured by the approved sediment control system. <br />Approval of MR117 allows for NECC to move this temporary pile to the west of Pond 1. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; ; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, <br />4.05.9; Stream Buffer Zones 4.05.18: <br />Pond 1 continues to hold water but was not discharging. The water elevation was approximately 6 inches below <br />the discharge elevation at the time of the inspection. <br />Construction on the reconfiguration of Ditch D26 has not been conducted at this time. <br />Pond 7 continues to hold water but the west end of the pond is beginning to dry. NECC plans to clean sediment <br />from this pond as soon as conditions allow. No discharge was occurring from pond 7 nor was there any evidence <br />that any recent discharge had occurred. Wave action is cutting into the inslope bank on the east end of Pond 7. <br />Armoring of the inslope at the water line may be warranted to minimize damage caused by the wave action. <br />NECC filled the ditch at the pond 7 SAE to allow vehicle access to the proposed Bates Mine air shaft. <br />Redefinition of the SAE ditch was conducted as soon as the inspection returned from observing the proposed air <br />shaft location. <br />No problems were identified with Pond 8. Pond 8 water elevation was well below discharge level. <br />NECC has shaped and the area on the inlet to Culvert C70 and C71 in preparation fro placement of the conveyor <br />in this area. Bobby Steele and the inspector discussed NECC's intent to permit Clean water ditch D 11 to the north <br />side of the haul road to the approved conveyor location. SAE containment areas 3 and 4 remain functional. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />NECC continues to work and compact RDA. NECC is concentrating on placing waste towards the south <br />part of the working RDA surface. A compactor was compacting the material at the time of the inspection. The <br />material being placed on the pile was wet filter cake. As such, only a small amount is being transported via the <br />conveyor onto the RDA. This material is being placed in thin layers to optimize drying. <br />Number of Partial Inspection this Fiscal Year: 11 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 10 <br />