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September 17, 2012 C- 1981 - 019 / Colowyo Coal Mine RDZ <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R — Comments Noted V= Violation Issued NA Not Applicable <br />R - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />R - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />Y - Other <br />NA - Processing Waste <br />R -Roads <br />R - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />R - Slides and Other Damage <br />R - Support Facilities On -site <br />Y -Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />Rob Zuber of DRMS conducted the complete inspection. Tony Tennyson and Kurt Blunt of Colowyo also <br />participated in the inspection. The ground was dry. The weather was warm; no precipitation was experienced. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />A water truck was observed controlling dust. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Records were checked, and the check list is provided in the inspection report. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />Observed activities on site during the two -day inspection included: <br />• The 102 dragline and a dozer were working below the West Pit Spoil Pile (aka Hink's Peak) on the south <br />side. <br />• In the West Pit, the 103 dragline was working on F Seam overburden. <br />• In South Taylor Pit, the 114 shovel was idle for maintenance, the 115 excavator was loading trucks. <br />• In the East Pit (EP056) equipment was grading the north facing slope where the high wall was previously. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement, Drainage Control; Surface Stabilization: <br />West Taylor Fill was observed from above and below. No problems were observed, but the rocks in the side <br />drains still need to be broken, and terrace ditches are not yet constructed. The face is not completely covered with <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: I <br />Page 2 of 13 <br />