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XBOW MINING LLC <br />Miscellaneous Comments: <br />1. The SWMP control devices were inspected and all SWMP control devices were found to be in fair <br />condition. Performed further routine SWMP maintenance during the quarter on Elk Creek mine and <br />facility roads. Sumps in front of straw bales are cleaned and/or straw bales replaced, as part of routine <br />maintenance. <br />2. Sediment and Water Level Determination — When sediment enters a pond, it is deposited unevenly, <br />usually collecting at the inlets rather than evenly across the bottom of the pond. Reported sediment levels <br />are based upon the inspector's observations made throughout the quarter during routine inspections in <br />combination with knowledge of the pond structure. The reported pond water level is also determined by <br />observations relative to the various landmarks in the pond (depth to bottom, primary riser, etc.) <br />3. East Yard Pond — During the third quarter the remainder of dredged pond material was hauled to the <br />II West Coal Refuse Pile for disposal. As such, the pond has regained 100% of its capacity/ volume. <br />Notwithstanding comments above, ponds have been maintained as designed and in accordance with the <br />approved plan. <br />Inspected By: <br />Under Direction of: <br />C7 e <br />James A. Kiger <br />THIRD QUARTER 2012 POND INSPECTION REPORT <br />Pond Inspection Date: September 6, 2012 <br />, <br />r <br />.342:3'' m <br />• <br />Z; s� <br />� <br />4.,4" o. 34286 <br />Benjamin L. Godwin <br />Colorado Registered Pro S 0 <br />3137 Hwy 133 • P.O. Box 535 • Somerset, Cc1orado 81 434 USA <br />TEL (970) 929 -5122 .4 FAX (970) 929-5177 <br />