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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 C O L O R A D OQ I V I S 1 0 N O F <br />Denver, Colorado 80203 RECLAMATION <br />Phone: (303) 866 -3567 MINING <br />FAX: (303) 832 -8106 —&— <br />SAFETY <br />September 11, 2012 <br />John W. Hickenlooper <br />Re: New Elk Coal Mine, C1981012, Fourth Quarter 2011 Waste Bank Inspection Report Review <br />Dear Mr. Thompson: <br />New Elk Coal Company submitted Fourth Quarter 2011 Quarterly Waste Bank Inspection Report to the <br />Division on July 30, 2012. Three disposal areas were inspected by New Elk Coal Company, LLC and <br />included in their report, the Development Waste Disposal Area (DWDA) south of State Highway 12 and <br />west of the main facility Access Road, the Development Waste Disposal Area 92 located south of State <br />Highway 12 and east of the main facility Access Road, and the Refuse Disposal Area (RDA) located <br />north of State Highway 12 and the Middle Fork of the Purgatoire River. Construction has been completed <br />on the DWDA as well as reclamation of the surface. <br />The Division's review of New Elk's Fourth Quarter Waste Bank Inspection Reports for the year 2011, <br />The Division finds the report in compliance with the following rules: <br />1. 4.09. 1 (1 1)(a) — The fills were inspected quarterly for stability by a registered engineer during the (4) <br />placement and compaction of fill materials and (5) revegetation period. <br />2. 4.09. 1 (1 1)(c) — Rule 4.09(11)(c) is no longer applicable during this stage of construction. <br />3. 4.10.2(2)(a) — The fills were inspected by a registered engineer experienced in construction of <br />similar earth and waste structures. <br />4. 4.10.2(2)(b) — The inspections included the necessary test to evaluate potential hazards to human life <br />and property. None were observed. <br />5. 4.10.2(2)(c) — Steepness of slopes, seepage and other visible factors which could indicate potential <br />failure were considered within the inspections. No signs of instability, erosion or seeps were <br />observed. <br />The Division's review of review of New Elk's Fourth Quarter Waste Bank Inspection Reports for the year <br />2011, finds the report not in compliance with the following rules: <br />4.09.1(11)(b) —New Elk Mine's DWDA and RDA were inspected on December 29, 2011 and <br />received by the Division on July 30, 2012. A qualified registered engineer should provide to the <br />Division a certified report within two weeks after the inspection that the waste banks are being <br />constructed as specified in the design approved by the Division. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />Governor <br />Mr. Ron Thompson <br />Mine Manager <br />Mike King <br />New Elk Coal Company <br />Executive Director <br />122 W First Street <br />Loretta E. Pineda <br />Trinidad, CO 81082 <br />Director <br />Re: New Elk Coal Mine, C1981012, Fourth Quarter 2011 Waste Bank Inspection Report Review <br />Dear Mr. Thompson: <br />New Elk Coal Company submitted Fourth Quarter 2011 Quarterly Waste Bank Inspection Report to the <br />Division on July 30, 2012. Three disposal areas were inspected by New Elk Coal Company, LLC and <br />included in their report, the Development Waste Disposal Area (DWDA) south of State Highway 12 and <br />west of the main facility Access Road, the Development Waste Disposal Area 92 located south of State <br />Highway 12 and east of the main facility Access Road, and the Refuse Disposal Area (RDA) located <br />north of State Highway 12 and the Middle Fork of the Purgatoire River. Construction has been completed <br />on the DWDA as well as reclamation of the surface. <br />The Division's review of New Elk's Fourth Quarter Waste Bank Inspection Reports for the year 2011, <br />The Division finds the report in compliance with the following rules: <br />1. 4.09. 1 (1 1)(a) — The fills were inspected quarterly for stability by a registered engineer during the (4) <br />placement and compaction of fill materials and (5) revegetation period. <br />2. 4.09. 1 (1 1)(c) — Rule 4.09(11)(c) is no longer applicable during this stage of construction. <br />3. 4.10.2(2)(a) — The fills were inspected by a registered engineer experienced in construction of <br />similar earth and waste structures. <br />4. 4.10.2(2)(b) — The inspections included the necessary test to evaluate potential hazards to human life <br />and property. None were observed. <br />5. 4.10.2(2)(c) — Steepness of slopes, seepage and other visible factors which could indicate potential <br />failure were considered within the inspections. No signs of instability, erosion or seeps were <br />observed. <br />The Division's review of review of New Elk's Fourth Quarter Waste Bank Inspection Reports for the year <br />2011, finds the report not in compliance with the following rules: <br />4.09.1(11)(b) —New Elk Mine's DWDA and RDA were inspected on December 29, 2011 and <br />received by the Division on July 30, 2012. A qualified registered engineer should provide to the <br />Division a certified report within two weeks after the inspection that the waste banks are being <br />constructed as specified in the design approved by the Division. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />