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March 7,2013 C-1980-007/West Elk Mine JRS Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable N -Air Resource Protection R -Roads N -Availability of Records N -Reclamation Success N -Backfill& Grading N -Revegetation N -Excess Spoil and Dev.Waste N - Subsidence N -Explosives R - Slides and Other Damage N -Fish&Wildlife N - Support Facilities On-site R -Hydrologic Balance N - Signs and Markers R -Gen. Compliance With Mine Plan N - Support Facilities Not On-site N - Other N - Special Categories Of Mining R -Processing Waste N -Topsoil COMMENTS This was a partial inspection of the West Elk Mine conducted by Jim Stark of the Colorado Division of Reclamation,Mining and Safety. Jessica Loveland,with Mountain Coal,accompanied me on the inspection. The mine was actively producing coal at the time of the inspection. Only the main facilities and Sylvester Gulch facilities areas were accessible without a snow cat. The remaining areas will remain inaccessible until late spring or early summer when the snow melts. The weather was warm and sunny and the ground was wet and muddy due to melting snow. See the"Hydrologic Balance" section below for more details on the runoff. HYDROLOGIC BALANCE-Rule 4.05 Drainage Control 4.05.1,4.05.2,4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7,4.05.10;Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage—Acid and Toxic Materials 4.05.8;Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: -Pond SG-I was covered with snow but there was very little water in it at the time of the inspection. The pond embankment was also covered with snow but appeared to be stable. No erosional problems were noted on the pond embankment. -The RPE pond east cell contained water to the level of the equalizer pipe but was not flowing into the west cell. The west cell of the RPE pond contained only a small amount of water. Neither pond cell was discharging at the time of the inspection. There was water flowing into the pond from the RPE due to the warm weather and melting snow. The ponds are basically incised ponds. The pond embankments were well vegetated and stable and no erosional problems were noted. West Elk will be using the water from the RPE ponds in the coal prep plant. West Elk will be installing some pipe overland from the pond,to the conveyor,across the haul road and into the prep plant. -Pond MB-4 contained water approximately 12"below the discharge pipe and was not discharging at the time of the inspection. The presettling sump was basically full but was not flowing into the main pond. Both the pond and the sump are incised,concrete cells. Both the pond and the sump were stable at the time of the inspection. Pond MB-3 contained water approximately Number of Partial Inspection this Fiscal Year: 6 Number of Complete Inspections this Fiscal Year: 3 Page 2 of 5