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August 23, 2012 C- 1981- 012/New Elk Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backflll & Grading <br />R - Excess Spoil and Dev. Waste <br />Y - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Binns of CDRMS. The mine is an underground mine whose <br />operations are currently idle. The mine is in Temporary Cessation status. A limited staff remains at the mine to <br />conduct maintenance and take care of daily operations. The weather was cloudy with localized thunderstorins <br />occurring during the inspection. NECC staff said that the mine site had experienced a heavy rainfall on 8/20/2012. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 Placement; Drainage Control; Surface Stabilization: <br />The DWDA 42 remains graded in accordance with the approved plan. Some material has been moved <br />from the eastern end of the DWDA 42 to place on the RDA. There was no equipment on the DWDA 42, nor has <br />any cover material been placed on the pile. Ditch D 12 on the north side of DWDA 42 need to be re- established. <br />FISH and WILDLIFE — Rule 4.18: <br />Mine personnel reportedly have observed bear along the West portal access road west of the C &W <br />warehouse. During the inspection, the inspector and NECC representative, Bobby Steele were looking for the <br />Riparian Reference area limits, and encountered very fresh bear sign between the river and the access road. No <br />bear was encountered. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4, Effluent Limits 4.05.2, Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage —Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Culvert C -23 at the west portal needs sediment cleared from inlet and the outlet jacked open. Some <br />crushing of the outlet had occurred. <br />Piping has fallen into ditch D6 north of the Topsoil /Subsoil stockpile storage area. This material needs to be <br />removed from the ditch. <br />Pond 1 was discharging. The mine dewatering pump was off at the time of the inspection but the pond was gravity <br />discharging into the Purgatoire River. Discharge was very clear. Outlet structure upgrades have been completed <br />and the outlet area has been regraded. This outlet area along the river bank will need seeding this fall. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 8 <br />