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July 17, 2012 C- 1981- 012/New Elk Mine JHB <br />ditch is in good condition. The concrete reinforced portion has a minimal amount of sediment in this section. The <br />ditch was functional to the metal flume where it drains down the slope and to the east of Pond No. 7. <br />NECC has not yet installed the western extension of ditch D26 (replacement for the western extent of Ditch D 18). <br />Bobby indicated that this proj ect was planned to be implemented in the next couple of weeks. upland drainage not <br />currently caught by Ditch D 18, or this western extension of Ditch D26 currently drains onto the facilities area to <br />Ditch D39A and eventually to Pond No. 7. <br />The 400K raw water tank and 25K potable water tank have had final connections completed at this tune. The <br />concrete vaults are completed, but final connections to the new tanks have not yet been made. The Water tank <br />SAE is controlled by hay bales anchored in a low spot on the Northern part of the berm. These hay bales are <br />degrading. They are currently effective as evidenced by the sediment retained on site. Replacement of these bales <br />will be needed prior to the winter to assure this structure continues to function as designed. <br />The inlet of Culvert C2 on the west end of the C &W yard is needed. (Photo 1) <br />West portal sediment control system remains in good condition. Maintenance of the ditches during the <br />thunderstorm season is an ongoing task. <br />The alluvial well on the northeast side of the West portal area has been constructed. A 2" diameter PVC pipe is <br />enclosed by a 4" square metal "rust" colored casing. The metal casing has a cap, but was not locked at the time of <br />the inspection. <br />DRMS still needs to receive the Annual Certification of Impoundments for 2011. <br />GENERAL MINE PLAN COMPLANCE: <br />Both the Grassland reference area and the Upland reference area appear to have been disturbed recently. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Stabilization; Placement: <br />Vince Massaroti had been working on the RDA on 7/17. NECC is using the drier development waste to raise the <br />RDA travel path (road -way) on the surface of the RDA. This work will provide a drier pathway for vehicle travel, <br />and continue to allow drying of the refuse material. <br />An additional short "grasshopper" conveyor extension has been placed on the north end of the RDA conveyor <br />system. This arrangement deposits the refuse material higher up on the pile for better placement by trucks and <br />loaders. <br />The RDA conveyor system was idle on 7/18 for conveyor repairs. Drainage around the RDA was well shaped and <br />functional. No additional rock check dams had been installed on the west side of the pile. Potential location and <br />treatment of these check dams were discussed during the inspection. NECC recognizes that these are temporary <br />structures and are not a part of the permanent designs of the pile. NECC would like to install several temporary <br />rock check dams to retain sediment higher on the slope and minimize the amount of sediment setting into the <br />permanent west down drain. This is an acceptable practice to the Division. <br />The slurry line is completed and equipment is in place. No slurry is being pumped to the underground workings. <br />NECC has hydroseeded the slopes of the Slurry well area, and has placed gravel in the area to be used for vehicle <br />access to slurry wells No. 2 and No. 3. (Photo 2) <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 4 of 11 <br />