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March 11, 2014 C- 2010- 089/New Horizon North Mine RDZ <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />NA -Other <br />N - Processing Waste <br />N -Roads <br />NA -Reclamation Success <br />NA - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />N -Signs and Markers <br />N - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N -Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon North Mine conducted by Dan Hernandez, Rob Zuber, and Zach <br />Trujillo of the Division of Reclamation, Mining and Safety. Mine staff on the inspection included Ross Gubka <br />and Frank Ferris. Weather conditions were clear and warm. The primary topic for the inspection was surface <br />water monitoring points, in particular the following sites that Western Fuels would like to remove from the <br />monitoring plan or suspend monitoring: SW -N200, SW -N201, SW -N205, SW -N206, SW -N209, and SW -N211. <br />HYDROLOGIC BALANCE - Rule 4.05 C Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The monitoring sites for the 2nd Park Lateral were inspected. SW -N209 is the upstream site, and SW- <br />N200 is the downstream site. The irrigation channel is still visible at the upstream side but not at the downstream <br />side. The pipeline that routes the irrigation water that used to flow in 2nd Park Lateral around the mine site was <br />found to be in place. <br />The monitoring site at the upstream end of Meehan Draw, SW -N206, was inspected. Information in the mine <br />permit (Map 2.04.7 -1) suggests that this site was "destroyed," but it was unclear what this means at the time of the <br />inspection. An area below a culvert under the 2650 Road could be used for monitoring (a flume should be <br />constructed). Across the road, a pond detains water prior to discharge to the culvert and to SW -N206. <br />On Map 2.04.7 -1, approximately 800 feet north of SW -N206, is site SW -N205. It was unclear during the <br />inspection what this site entails. There was no obvious point where surface water monitoring would be <br />conducted. <br />Site SW -N201 is on a sub lateral ditch that was used to divert some of the flow from the 2nd Park Lateral. It is no <br />longer used and looks like it does not carry much water, even local runoff. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 5 <br />