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Colowyo Coal Company <br />2012 Annual Reclamation and Hydrology Report <br />SECTION 1 - IMPOUNDMENTS <br />RULE REQUIREMENT <br />RULE 4.05.9(14), 4.05.9(14)(a), 4.05.9(17) and 4.05.9(18) <br />• 4.05.9(14) all impoundments shall be inspected by a qualified registered <br />professional engineer or other qualified professional specialist under the direction <br />of a professional engineer. The professional engineer or specialist shall be <br />experienced in the construction of impoundments. <br />• 4.05.9(14)(a) such inspections shall be made regularly during construction, upon <br />completion of construction, and at least yearly until removal of the structure or <br />release of the performance bond. <br />• 4.05.9(17) all impoundments shall be examined quarterly, by a qualified person <br />designated by the operator, for appearance of structural weakness and other <br />hazardous conditions. The reports shall be retained at or near the mine site, and a <br />copy of the report shall be submitted to the Division on an annual basis. <br />• 4.05.9(18) the Division may waive the requirements of 4.05.9(17) for certain <br />impoundments if the permittee adequately demonstrates, in writing, that failure of <br />the impoundment(s) will not create a threat to public health and safety or threaten <br />significant environmental harm. The following provisions apply to the review <br />and approval of any waiver from the requirements of Rule 4.05.9(17). <br />Colowyo inspects all impoundments quarterly by a qualified person designated by the <br />operator, for appearance of structural weakness and other hazardous conditions. The <br />reports are retained at the mine site, and copies of the reports are submitted at the end of <br />each quarter to the Colorado Division of Reclamation Mining and Safety. <br />Colowyo submitted a CDPS Permit Renewal on October 1, 2009 to the CDPHE — Water <br />Quality Control Division (WQCD). WQCD instructed Colowyo to operate under the <br />previous CDPS permit, which expired on February 28, 2011, until the current permit <br />renewal is approved. The current CDPS Permit was issued and signed on January 31, <br />2005 and is effective through midnight, February 28, 2011. The new CDPS Permit is <br />currently under review by the WQCD. Therefore, the effective date of the new CDPS <br />Permit has yet to be determined. <br />Page 1 -1 <br />