Notice of Non-compliance Permittee Name: Citizen’s Complaint # N/A 53-6214 Page ​ 1​ of ​ 3 I.D. #​​ ​013962 KENTUCKY FUEL CORPORATION An inspection conducted on ​10/05/2018​​ revealed that permit ​898-0884​​ is in violation of approved provisions and/or regulations. The extent of the violation(s) and or remedial action(s) is as follows: 1 Code ​AC​​ Regulation/Performance Standard ​Roads - KAR 16:220 ☒ ​Permittee responsible for violation ☐ ​Permittee and operator ​74 ID#:            responsible for violation. Description of violation and location: Permittee has failed to maintain proper drainage systems for Access Road E to comply with the approved permit design causing erosion and allowing road ditches to become filled with sediment. Located on Increment 2, 7 Violation occurred on Increment # 2,7 Bonded by Surety Name: LEXON INSURANCE ID#: 0825 COMPANY ☒ ​Violation Correctable – Remedial Measures to be performed: Grade Access Road E and surface with approved material, re-establish all diversions to assure free flow and construct adequate drainage to comply with the approved permit design. You are ordered to correct the above violation by ​3:00 P.M.​​ on ​10/20/2018​​. ☐ ​Violation Non correctable – Because: 2 Code ​WQ​​ Regulation/Performance Standard ​Water Quality - KAR 16:070 ☒ ​Permittee responsible for violation ☐ ​Permittee and operator      ​75 ID#:       responsible for violation. Description of violation and location: Permittee failed to pass all surface drainage from BP36 - D1 from the permitted area through the approved sediment control by allowing it to over top into Bear Fork water shed. Located on Increment #20. Violation occurred on Increment # 20 Bonded by Surety Name: LEXON INSURANCE ID#: 0825 COMPANY ☒ ​Violation Correctable – Remedial Measures to be performed: Repair diversion ditch BP36- D1 to prevent piping and divert all surface water drainage from the permitted area through the approved sediment control. You are ordered to correct the above violation by ​12:00 P.M.​​ on ​10/06/2018​​. ☐ ​Violation Non correctable – Because: Env. Inspector: Env. Control Supervisor: ​Ryan Wells ​Michael C. Ramey Env. Control Manager: Person On-Site To Whom Copy Was Delivered: Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation ​Charles Holbrook I.D. No: 050310 Date: 10/05/2018 050283 Date: 10/08/2018 Date: 10/08/2018 {PRM_OPR_ONSITE.CAPTURE Signature: {PRM_OPR_ONSITE} NAME} Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 1​ of 2 Person To Whom Copy Was Hand Delivered: {PRM_OPR_HAND.CAPTURENAME Signature: {PRM_OPR_HAND} } Certified Date Certified Mail No. Contact Inspector at: Deborah Arrington Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation upon completion of remedial measures Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 2​ of 2 Notice of Non-compliance Permittee Name: Citizen’s Complaint # N/A 53-6214 Page ​ 2​ of ​ 3 I.D. #​​ ​013962 KENTUCKY FUEL CORPORATION An inspection conducted on ​10/05/2018​​ revealed that permit ​898-0884​​ is in violation of approved provisions and/or regulations. The extent of the violation(s) and or remedial action(s) is as follows: 3 Code ​HR​​ Regulation/Performance Standard ​General Hydrologic Requirements - KAR 16:060 ☒ ​Permittee responsible for violation ☐ ​Permittee and operator ​76 ID#:            responsible for violation. Description of violation and location: 1.) Mining activities have adversely impacted the hydrologic balance of the areas outside of the permit area located below diversion ditch BP36-D1 on Increment #20 in the Bear Fork watershed. By allowing BP36-D1 to fill up with material causing it to over top and also pipe through the bottom of the diversion creating an uncontrolled discharge below the diversion ditch. 2.) A slide has occurred near BP36-D1 allowing water to flow outside the permit area on Increment #20 in the Bear Fork watershed. Violation occurred on Increment # 20 Bonded by Surety Name: LEXON INSURANCE ID#: 0825 COMPANY ☒ ​Violation Correctable – Remedial Measures to be performed: 1.) Permittee shall retrieve all mud, sediment, and debris possible from the affected areas of all properties of the Bear Fork and Open Fork watersheds across and below the intersection of Bear Fork and Open Fork clear the obstructed culverts located under the county road and the road surface of Bear Fork and Open Fork. 2.) Permittee shall stabilize seed and mulch slide area and re establish sediment control located on Increment #20 in the Bear Fork watershed. You are ordered to correct the above violation by ​12:00 P.M.​​ on ​10/06/2018​​. ☐ ​Violation Non correctable – Because: 4 Code ​DV​​ Regulation/Performance Standard ​Diversions - KAR 16:080 ☒ ​Permittee responsible for violation ☐ ​Permittee and operator      ​77 ID#:       responsible for violation. Description of violation and location: Permittee failed to maintain diversion ditch BP36 - D1 located on Increment # 20 by allowing them to fill up with sediment, rock and debris allowing it to over top and also pipe through the bottom of the diversion creating a uncontrolled discharge below the diversion ditch into Bear Fork water shed. Located on Increment #20. Violation occurred on Increment # 20 Bonded by Surety Name: LEXON INSURANCE ID#: 0825 COMPANY ☒ ​Violation Correctable – Remedial Measures to be performed: Clean out and cease the uncontrolled discharge from diversion ditch BP 36-D1 and seep located on Increment # 20 as set forth in the approved permit plan re-establishing proper drainage to the approved sediment structure. You are ordered to correct the above violation by ​12:00 P.M.​​ on ​10/06/2018​​. ☐ ​Violation Non correctable – Because: Env. Inspector: Env. Control Supervisor: Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation ​Ryan Wells ​Michael C. Ramey I.D. No: 050310 Date: 10/05/2018 050283 Date: 10/08/2018 Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 1​ of 2 Env. Control Manager: Person On-Site To Whom Copy Was Delivered: Person To Whom Copy Was Hand Delivered: {PRM_OPR_ONSITE.CAPTURE Signature: {PRM_OPR_ONSITE} NAME} {PRM_OPR_HAND.CAPTURENAME Signature: {PRM_OPR_HAND} } Certified Date Certified Mail No. Contact Inspector at: Date: 10/08/2018 ​Charles Holbrook Deborah Arrington Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation upon completion of remedial measures Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 2​ of 2 Notice of Non-compliance Permittee Name: Citizen’s Complaint # N/A 53-6214 Page ​ 3​ of ​ 3 I.D. #​​ ​013962 KENTUCKY FUEL CORPORATION An inspection conducted on ​10/05/2018​​ revealed that permit ​898-0884​​ is in violation of approved provisions and/or regulations. The extent of the violation(s) and or remedial action(s) is as follows: 5 Code ​SC​​ Regulation/Performance Standard ​Sedimentation Ponds - KAR 16:090 ☒ ​Permittee responsible for violation ☐ ​Permittee and operator ​78 ID#:            responsible for violation. Description of violation and location: Permittee has failed to stabilize the embankment of sediment structure Pond #35 located on Increment #20. Violation occurred on Increment # 20 ID#: 0825 Bonded by Surety Name: LEXON INSURANCE COMPANY ☒ ​Violation Correctable – Remedial Measures to be performed: Permittee shall seed, mulch, or otherwise stabilize the embankment of Pond #35. You are ordered to correct the above violation by ​3:00 P.M.​​ on ​10/20/2018​​. ☐ ​Violation Non correctable – Because:     Code   ​ ​  ​ Regulation/Performance Standard       ​      ☐ ​Permittee responsible for violation ☐ ​Permittee and operator      ​      ID#:       responsible for violation. Description of violation and location: Violation occurred on Increment #      Bonded by Surety Name:       ID#:       ☐ ​Violation Correctable – Remedial Measures to be performed: You are ordered to correct the above violation by      ​ ​     ​ on      ​ ​     ​. ☐ ​Violation Non correctable – Because: Env. Inspector: Env. Control Supervisor: ​Ryan Wells ​Michael C. Ramey Env. Control Manager: Person On-Site To Whom Copy Was Delivered: Person To Whom Copy Was Hand Delivered: 050310 Date: 10/05/2018 050283 Date: 10/08/2018 Date: 10/08/2018 ​Charles Holbrook {PRM_OPR_ONSITE.CAPTURE Signature: {PRM_OPR_ONSITE} NAME} {PRM_OPR_HAND.CAPTURENAME Signature: {PRM_OPR_HAND} } Certified Date Certified Mail No. Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation I.D. No: Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 1​ of 2 Contact Inspector at: upon completion of remedial measures Deborah Arrington Kentucky Energy and Environment Cabinet Department For Natural Resources Division of Mine Enforcement and Reclamation Frankfort/Regional Office/Inspector SME-02 Revised: 06/2008 Page: 2​ of 2