_INSPECTION - C1981012 ‎(8)‎

• Permit No: C1981012
• IBM Index Class Name: Inspection
• Doc Name: Inspection Report
• From: DRMS
• To: Ron Thompson
• Inspection Date: 1/28/2013
• Email Name: LDS
• Email Name: DIH
• Email Name: JDM
• Email Name: LJS
• Media Type: D
• Archive: No

January 28, 2013 C-1981-012/New Elk Mine LDS
Inspection Topic Summary
NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable
N -Air Resource Protection R -Roads
R -Availability of Records N -Reclamation Success
N -Backfill &Grading R -Revegetation
R -Excess Spoil and Dev.Waste N - Subsidence
R -Explosives N - Slides and Other Damage
R -Fish&Wildlife Y - Support Facilities On-site
R -Hydrologic Balance R - Signs and Markers
R -Gen. Compliance With Mine Plan R - Support Facilities Not On-site
N -Other N - Special Categories Of Mining
R -Processing Waste R -Topsoil
COMMENTS
This was a complete inspection carried out by Leigh Simmons and Dan Hernandez of Colorado Division for
Reclamation, Mining and Safety(the Division). Ron Thompson of New Elk Coal Company(NECC) accompanied
the inspection thoughout. The weather varied from overcast and breezy,to heavy snow,to clear and sunny.
The New Elk Mine continues in Temporary Cessation, and continues to send—5-6 truckloads of stockpiled coal
per day to a cement plant in Lyons. The Chief Operating Officer, Dave Stone,was not at the site during the
inspection but made contact by phone and was at pains to stress that NECC would remain financially solvent for
the forseeable future. Mr Stone clarified that Cline Mining was exploring funding alternatives to the current deal
with Marret Asset Management. Mr Stone indicated that NECC had yet to agree a long term contract with a
customer,but he remained optimistic that on-going negotiations with various prospective customers would
progress to the point where the mine would return to production within 90 days.
Several personnel had been hired since the previous inspection, including one person, Dick Tribble,whose duties
were expected to be related to environmemntal compliance. Roles and responsibilities of personnel at the mine
were somewhat in flux,though it was understood that Randy Aker has been designated as Acting Mine Manager.
The progress made on the ground since the last inspection was encouraging and suggests a commitment on the part
of NECC to tackle environmental compliance issues. Those issues identified in the inspection of January 2,2013
as priority level 1 had been, or were in the process of being, addressed. Many of the issues that were previously
identified as priority level 2 or 3 had not yet been addressed. The Division will need to see that these are addressed
by the time of the next inspection.
This report will refer to the report of the January 2, 2013 inspection,but will be complete in its own right. The
designation of tasks by priority level will be discontinued;this is done intentionally to avoid cultivating the
misconception that varying lavels of non-compliance can exist.
Finally, it is worth noting here that prior to the inspection,NECC employee, Dennis Wilson had found a blocked
culvert, and taken action to remove it and restore an open channel on his own initiative;this pro-active approach
on behalf of NECC is commendable and something that the Division would like to encourage in the future,though
NECC must ensure that replacement of any removed approved structures must occur quickly to remain in
compliance with the approved permit.
Number of Partial Inspection this Fiscal Year: 4
Number of Complete Inspections this Fiscal Year: 3
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