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November 15, 2012 C-1981-012/New Elk Mine DIH <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> N -Air Resource Protection N -Roads <br /> N -Availability of Records N -Reclamation Success <br /> R -Backfill &Grading N -Revegetation <br /> N -Excess Spoil and Dev.Waste N - Subsidence <br /> R -Explosives N - Slides and Other Damage <br /> N -Fish &Wildlife R - Support Facilities On-site <br /> R -Hydrologic Balance N - Signs and Markers <br /> R -Gen. Compliance With Mine Plan R - Support Facilities Not On-site <br /> N -Other N - Special Categories Of Mining <br /> N -Processing Waste N -Topsoil <br /> COMMENTS <br /> This was a Coal Partial Inspection conducted by Dan Hernandez. The New Elk Mine and the Jansen Loadout <br /> were both inspected during this inspection. Ron Thompson,New Elk Coal Company representative,was present <br /> during the inspection of the mine and the loadout. The weather was clear, cool, sunny, and dry during the <br /> inspection of both areas. The mine and the loadout are in Temporary Cessation. Dewatering and venting of the <br /> mine's underground workings were occurring at the time of the inspection. Neither underground extraction <br /> activities nor surface coal processing activities were occurring at the time of the inspection. Processed coal that <br /> has been stockpiled at the mine was being transported off-site at the time of the inspection. Mr. Thompson stated <br /> that the coal is being trucked to a Cemex cement plant located near Lyons, Colorado. According to Mr. <br /> Thompson, coal was being trucked out at the rate of 7-10 truck-loads per day. Processed coal that is stockpiled at <br /> the loadout is presently not being trucked off-site. According to Mr. Thompson, scrap metal is also being hauled <br /> away from the mine site,though this activity was not observed occurring during the inspection. <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 /> A trench that had been recently excavated just north of the silos was filled in at the time of the inspection. This <br /> trench had been excavated for a new water line (see photo on next page). <br /> Number of Partial Inspection this Fiscal Year: 3 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 2 of 9 <br />