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June 20,2013 C-1981-020/Munger Canyon Mine MPB Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable Y -Air Resource Protection R -Roads R -Availability of Records Y -Reclamation Success R -Backfill& Grading R -Revegetation NA -Excess Spoil and Dev. Waste NA - Subsidence NA -Explosives Y - Slides and Other Damage R -Fish&Wildlife Y - Support Facilities On-site R -Hydrologic Balance Y - Signs and Markers Y -Gen. Compliance With Mine Plan R - Support Facilities Not On-site NA -Other NA - Special Categories Of Mining Y -Processing Waste Y -Topsoil COMMENTS This was a complete inspection of the Munger Canyon Mine and Loma Loadout conducted on June 20,2013 by Mike Boulay of the Division of Reclamation,Mining and Safety(DRMS). There was no operator representative present during the inspection. Weather conditions were clear and warm and ground conditions were dry. The inspection began at the lower end of the portal access road and proceeded up to the portal site,then continued to culvert locations along the haul road,the coal mine waste disposal area and sediment pond location. There was no activity at the mine site at the time of the inspection. AVAILABILITY OF RECORDS—Rule 5.02.4(1): The availability of records was checked at J.E. Stover&Associates office on the afternoon of June 21 st the day following the on-site inspection. All required records were on file and available for review during this complete inspection and no problems were identified with the records review. Please see the DRMS Availability of Records checklist at the end of this inspection report. BACKFILL and GRADING—Rule 4.14 Contemporaneous Reclamation 4.14.1;Approximate Original Contour 4.14.2;Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2,4.27;Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: The reclaimed portals and portal backfill area remain stable and there was no evidence of new openings or cracks anywhere along the mine bench and portal backfill areas. Overall the reclamation completed has been very successful and there has been minimal erosion to date. The graded backfill slopes in the portal area blend in well and conform to the original topography. The portal access road reclamation generally blends into the adjacent steep slope topography. FISH and WILDLIFE—Rule 4.18: There was a significant amount of elk and deer sign present on the lower portion of the reclaimed portal access road. Bear scat was also seen in two locations along the lower portion of the reclaimed access road. Number of Partial Inspection this Fiscal Year: 8 Number of Complete Inspections this Fiscal Year: 4 Page 2 of 7