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Page 2 of 2 <br />The Division's review of New Elks First Quarter Waste Bank Inspection Reports for the year 2012, finds the <br />report in compliance with the following rules: <br />1. 4.09.1(11)(a) — The fills were inspected quarterly for stability by a registered engineer during the (4) <br />placement and compaction of fill materials and (5) revegetation period. <br />2. 4.09.1(11)(c) — Rule 4.09(11)(c) is no longer applicable during this stage of construction. <br />3. 4.10.2(2)(a) — The fills were inspected by a registered engineer experienced in construction of similar earth <br />and waste structures. <br />4. 4.10.2(2)(b) — The inspections included the necessary test to evaluate potential hazards to human life and <br />property. None were observed. <br />5. 4.10.2(2)(c) — Steepness of slopes, seepage and other visible factors which could indicate potential failure <br />were considered within the inspections. No signs of instability, erosion or seeps were observed. <br />The Division's review of New Elk's First Quarter Waste Bank Inspection Reports for the year 2012, the Division <br />finds the report not in compliance with the following rule: <br />4.09.1(11)(b) —New Elk Mine's DWDA and RDA were inspected on March 31, 2012 and received by the <br />Division on July 1, 2012. A qualified registered engineer should provide to the Division a certified report <br />within two weeks after the inspection that the waste banks are being constructed as specified in the design <br />approved by the Division. <br />Additionally, as per Rule 4.10.2(2)(d) and 4.10.2(3), copies of the Waste Bank Inspection Reports shall be <br />maintained at the mine site and if the inspection discloses any potential hazard exist, the Division should be <br />informed promptly of the finding and of the emergency procedures formulated for public protection and remedial <br />action. Please make the noted corrections to the third quarter 2011 Waste Pile Inspection Report and submit the <br />Fourth Quarter 2011 Waste Pile Inspection Report to the Division. <br />Sincerely, <br />Janet Binns <br />Environmental Protection Specialist III <br />(303) 866 -3567 ext. 8107 <br />Cljhb /C1981012 /reports /1st q 2012 DWDA & RDA.dotx <br />