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September 12, 2012 C -1983- 059 /Terror Creek Loadout JRS <br />HYDROLOGIC BALANCE (cont.) - The main ditch along the haul road contained a small amount of standing <br />water from the recent rain but it was functioning properly, as there was a fair amount of water in the sediment <br />pond. The culverts under the road to the office and by the substation were both clear. There were no erosional <br />problems noted in the ditch. <br />- The ditch on the west side of the loadout, by the coal stockpiles, also contained a small amount of standing water. <br />The ditch appeared to be stable and no erosional problems were noted. The culvert running under the haul road <br />was clear at the time of the inspection. <br />GENERAL MINE PLAN COMPLANCE: <br />- The Terror Creek Loadout is a loadout only. Operations at the loadout include processing coal (sizing coal) and <br />loading train cars. The current operations at the loadout are 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 main haul road is a paved road to the truck scale. The road was stable and no problems were noted. The <br />remaining haul road is a dirt road. This portion of the road was also stable, with no nutting or erosional problems <br />noted. <br />The short road spur into the mine office and shop /warehouse area was stable, with no rutting or erosional problems <br />noted. <br />SUPPORT FACILITIES - Rule 4.04: <br />- The coal processing area (the breaker, stacking conveyors and coal stockpiles) were all in good condition at the <br />time of the inspection. There was no problem with fugitive dust coming from any of the coal stockpiles or <br />crushing facilities. <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. The fill slope was stable and well vegetated, with no erosional problems noted. <br />- The raw coal stockpile was considerably smaller than it has been the past few months. Jim Kiger indicated that <br />they had a recent order and shipment, which used some of this coal. <br />- The office and shop /warehouse area was stable and in good condition at the time of the inspection. A trucking <br />company leases the shop /warehouse building from Terror Creek but Terror Creek is still responsible for the <br />building and surrounding area. <br />TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; <br />Redistribution 4.06.4: <br />- Both topsoil stockpiles were well vegetated and stable at the time of the inspection. There were no erosional <br />problems noted on either of the piles. Both piles had the appropriate "topsoil" sign in place. <br />DOCUMENTS RECEIVED: None <br />This concludes the 21 September 2012 complete /OSM oversight inspection for the Terror Creek Loadout. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 10 <br />