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New Elk Mine <br />QUARTERLY COAL WASTE BANK INSPECTION REPORT <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: Third Quarter 2012 <br />Inspection Date: 9/29/2012 <br />General Description or Reference to Site Plan: <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 intermittently during 2012 with temporary cessation of mining <br />announced and effect July 11, 2012. The plant did not operate during the third quarter and <br />only a small quantity of development waste was transported to and spread on the RDA. <br />No compaction tests were conducted due to limited operations. <br />Activity During Inspection: <br />With both the Bates and Allen Seam mines in temporary cessation the plant did not operate <br />during the third quarter. No plant refuse was transported to the RDA and there was no activity <br />during the inspection. <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 />Threat to Human Life or Property: <br />Page 1 of 2 <br />