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May 24, 2012 C- 1981- 012/New Elk Mine JHB <br />The top of the RDA was getting dusty. Vince called for a water truck to water the surface. Drainage off the pile <br />was going to appropriate ditches and Pond 8. NECC had shaped up the ditch on the southwest side of the pile. <br />The slurry line is in place and connected to Slurry hole 43.NECC was not pumping slurry to the underground <br />workings yet. Vince thought that the line was not connected in the prep plant yet. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Drainage 4.03.1(4)/4.03.2(4) <br />Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6): <br />The Colorado Department of Transportation (CDOT) had recently dug out the outlet ends of three culverts on the <br />south side of Highway 12, between the conveyor and the mine entrance road. Work for the acceleration lane is <br />anticipated before long. <br />The access road to the RDA is in good condition. RDA access road ditch is well maintained. <br />The access road to the West Portal is well graded and ditches are in good condition. NECC has buried the slurry <br />line under the road intersections to the slurry well locations. <br />OFFSITE SUPPORT FACILIITES - Rule 4.04,4.28: <br />NECC has a large stockpile of coal at the load out site in preparation for shipping. The inspector met Bobby <br />Steele and Dan Robinson of Robinson trucking, contractors for the Jansen Load out, at the loadout on Friday 5/25. <br />No train was in place at the load out so no loading was being conducted. The Coal stockpile is large but within the <br />storage location allowed. NECC is permitted to store 25,000 tons of coal at the site. Some cleanup of coal is <br />needed on the outside of the concrete wall. No coal was observed outside of the sediment control system. <br />Some berms need to be reshaped due to tire marks on the berms. None of the berms have been breached and there <br />was no evidence of any surface water leaving the loadout site. <br />Stockpile was not dusty. NECC uses a water soluble glue to spray on the stockpile to control dust. This treatment <br />of the pile appears to be effective. <br />Some coal spillage was observed at the conveyor transfer point. The operator needs to keep theses spill points <br />cleaned up to minimize dust. <br />Overall the loadout is in good condition and is being adequately maintained. <br />TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; <br />Number of Partial Inspection this Fiscal Year: I I <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 4 of 10 <br />