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July 26, 2012 C -1983- 059 /Terror Creek Loadout JRS <br />GENERAL MINE PLAN COMPLANCE: <br />- The Terror Creek Loadout is a loadout only. Operations at the site include processing coal (sizing coal) and <br />loading trains. The ongoing operations at the site were consistent with what is approved in the permit. <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />- The haul road from the loadout entrance to the truck scale is a paved road. This road was well maintained and <br />stable. There were no problems noted with the road or the road embankments. The remaining haul road, from the <br />scale to the truck dump and back to the paved portion of the road, is a dirt road. This road was stable and well <br />maintained as well and no problems were noted. <br />SUPPORT FACILITIES - Rule 4.04: <br />- The fuel island area was in good condition at the time of the inspection. There was no sign of any spilled fuel. <br />- The loadout structure was stable at the time of the inspection. There was no coal spilled along the tracks or by <br />the loadout structure. <br />- The coal crushing and stacking facility was idle at the time of the inspection. There is a large amount of coal in <br />the lump, stoker and fines piles that can be shipped if needed. <br />- There is a large pile of coal by the truck scale area that is waiting to be processed. <br />DOCUMENTS RECEIVED: None <br />This concludes the 26 July 2012 Terror Creek Loadout partial inspection report. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 7 <br />