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August 23, 2012 C- 1981- 012/New Elk Mine JHB <br />Pond 7 was holding water but was not discharging at the time. NECC is waiting for TR66 approval to be final and <br />submit any required bond money prior to cleaning additional sediment from Pond 7. NECC has not yet placed <br />armoring on the east embankment to protect against wave action. <br />Containment areas 3 and 5 still need sediment removed. Runoff was contained in both containment structures, and <br />there was no sign that runoff had overtopped the berms. Containment area 4 does not need immediate clean out, <br />however, with the recent changes to the conveyor placement, Containment 4 is inaccessible. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization, Placement: <br />No recent coal refuse has been placed on the RDA. The prep plant is currently idle, along with mining <br />operations. NECC has placed graded and compacted some development waste material towards the south of the <br />pile. The development waste has proven to be a good driving surface on the pile for rubber tired equipment and <br />vehicles. The surface of the RDA has been well graded and compacted. The southern outslope is being worked to <br />maintain the appropriate grade prior to cover placement. NECC also plans to selectively place coarser <br />development waste material towards the southern face of the pile. NECC has found that the development waste <br />material compacts well and provides a very stable face. NECC continues to grade the RDA to have positive <br />drainage to the side ditches and drains and continues to add material towards the south of the pile to bring up the <br />top of the pile closer to crowned surface. <br />The culvert on the east side of the RDA, under the conveyor belt, needs sediment flushed out. The culvert on the <br />west side of the pile under the RDA access road needs clean out as well. NECC has not yet constructed rock <br />check dams in the west ditch as previously discussed. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3), Drainage 4.03.1(4)/4.03.2(4), Surfacing and Maintenance4.03.1(5) and <br />(6)/4.03.2(5) and (6), Reclamation 4.03.1(7)/4.03.2(7): <br />NECC continues to maintain the access roads in the permit area. The haul road to the development waste <br />conveyor spur has a low spot that is not draining. This section of the haul road has clean water diversion ditches, <br />D 19 and D 11, on either side (north and south). NECC needs to grade the road so that drainage off the road is <br />directed to appropriate controls. <br />A contractor for NECC, Purgatoire Valley Construction (PVC), continues to construct the <br />acceleration/deceleration lanes on the north and south sides of State Highway 12. The contractor has removed <br />additional material from the NW corner of the intersection of RDA access road and Highway 12. The knob has <br />been removed that allows for a gentler grade of RDA access road to intersect with the highway. TR66 revised the <br />status of the RDA Access road to a haul road. TR66 was approved on 8/31/2012 and is currently in the public <br />comment period. This additional disturbance measured 115 west of the approved access road location by 64 feet <br />north from the Highway right of way fence line. (7360 sq. ft., or 0.17 acres) <br />On 9/6/2012, the inspector spoke with Todd Ausbun of CDOT. Todd confirmed that PVC cut the slope further to <br />the north to provide improved safety and water control off the site. CDOT was OK with these changes and found <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 8 <br />