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July 17, 2012 C -1996- 084 /Lorencito Canyon Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V =Violation Issued NA Applicable <br />Y - Air Resource Protection <br />N -Availability of Records <br />R - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />NA - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />R -Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />R - Slides and Other Damage <br />NA - Support Facilities On -site <br />Y -Signs and Markers <br />NA - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Binns of CDRMS .Bobby Steele met the inspector at the mine <br />entrance road. Mr. Steele was completing maintenance repairs of previously identified gullies at the Lorencito <br />Canyon Mine. <br />The inspector had been at the New Elk Mine when New Elk Coal Company personnel contacted Mr. Steele who <br />was completing work at Lorencito. NECC still had an excavator and haul truck on site. The inspector chose to <br />meet Mr. Steele at the Lorencito Canyon Mine to confirm gully repairs and detennine if any additional gully work <br />was required before the equipment was removed from the site. <br />The mine site has been very dry. The region has been receiving afternoon thunderstonms. However, the afternoon <br />of the inspection stones formed west of the mine site and went south of the mine. Another stone formed west of <br />the mine site and went north of the mine, leaving the Lorencito Mine dry. Bobby noted that was very typical of <br />the weather patterns in the area, and Lorencito was often missed by the localized thunderstorms. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and <br />Gullies 4.14.6: <br />NECC conducted limited Rill and Gully repairs on the reclaimed areas in accordance with Rule 4.15.7(5)(a) <br />during the early part of July. NECC was finalizing these repairs at the time of the inspection. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement, Drainage Control; Surface Stabilization: <br />The three fills on the mine site: Fill 7, Fill 8, and F1119 remain in good condition, with good vegetative cover and <br />no signs of instability. NECC repaired two small gullies on the upper bench of Fill 8. A gully that had formed <br />immediately east of Fill 8 was appropriately repaired as well. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 9 <br />