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February 25, 2014 C- 1981- 008/New Horizon Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />NA - Processing Waste <br />Y -Roads <br />Y - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />Y -Signs and Markers <br />NA - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the New Horizon Mine conducted by Mike Boulay of the Division of <br />Reclamation, Mining and Safety Grand Junction Field Office. Ross Gubka of Western Fuels- Colorado (WFC) and <br />Frank Ferris and Tony Tennyson of Tri -State Generation and Transmission Association, Inc. (Tri- State) were <br />present during the entire inspection. Weather conditions were clear and warm. There was no activity at the New <br />Horizon Mine during this inspection. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked on the morning of 2/25 prior to the ground inspection. All required <br />records were on file and available for review at the mine office. No problems were noted with the records review. <br />The records are organized and easily accessible. All required records were on site and available for review. <br />Please see the attached Availability of Records checklist at the end of this inspection report. <br />FISH and WILDLIFE — Rule 4.18: <br />A Golden Eagle was spotted in the vicinity of the final pit and the same one was seen again at Pond 013. Canada <br />Geese were also seen at Pond 013. See attached photographs. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Ground conditions were dry throughout the mine site. Haul roads and access roads were dry and in good <br />condition. Road ditches appeared to be well maintained. The final pit to be backfilled located to the southwest of <br />Pond 013 was holding a small amount of groundwater. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />