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New Elk Mine <br />QUARTERLY COAL WASTE BANK INSPECTION REPORT <br />General Description or Reference to Site Plan: <br />CDMR Rules 4.09.1(11) and 4.10.2(2) <br />Mine: NEW ELK <br />Waste Bank MSHA ID. No.: Primary Refuse Disposal Area (RDA) <br />Inspection Period: Second Quarter 2012 <br />Inspection Date: 6/16/2012 <br />The Refuse Disposal Area is located north of State Highway 12 and the Middle Fork of the <br />Purgatoire River with refuse transported from the preparation plant to the RDA by conveyor belt. <br />The plant has operated intermittantly during 2011 with resumption of mining and trouble shooting <br />plant modifications. The operator has concentrated on improving grade on the working bench. <br />Compaction test conducted by CTL- Thompson detrmine that the pile is being constructed as <br />per approved plans. <br />Activity During Inspection: <br />With both the Bates and Allen Seam mines in production, the plant is now operating on a regular basis but <br />dependent on mine production. The plant, and thus the RDA has been typically in operation three days per <br />week. The plant and RDA were idle at the time of inspection. During other routine weekly inspections, <br />operators were observed placing refuse with truck/FEL loading and transporting refuse, a dozer spreading <br />the refuse in 1 -2 foot lifts, followed by a compactor in operation after exposure has allowed the refuse to <br />dry. <br />Drainage: (Discussion of springs. seeps, overland and channel flow, underdrain construction and/ <br />or discharge, integrity of 100 -year 24 -hour drainage structures, and evidence of positive drainage). <br />No springs or seeps were observed on the refuse side slopes. Positive drainage is established on <br />all areas. Vegetation is well established on previously reclaimed areas. <br />Observation of Fill Construction: (Description of material, compaction, lift thicknesses, slopes, <br />and construction methods). <br />Refuse is placed in 1 -2 foot lifts, allowed to dry, and then compacted. Periodically, CTL- Thompson, a <br />Geotechnical Engineering firm evaluates refuse compaction. The permit requires and testing demonstrates <br />that the operations have achieved in excess of the required 90% compaction. <br />Indications of Potential Failure or Instability: <br />None observed. Surface and side slopes were inspected for slumps, tension cracks, and other <br />indications of potential failure. <br />Page 1 of 2 <br />