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May 8, 2014 C- 2010- 089/New Horizon North Mine JHB <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 />N -Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />R - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />N -Explosives <br />N - Slides and Other Damage <br />R - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />Y - Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />NA -Other <br />N - Special Categories Of Mining <br />NA - Processing Waste <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Bums of CDRMS. Mr. Frank Ferris accompanied the inspection <br />and represented Western Fuels- Colorado. The weather was windy with intermittent rain showers throughout the <br />afternoon. <br />The mine is an active surface mine. <br />FISH and WILDLIFE — Rule 4.18: <br />WF -C has implemented Burrowing owl mitigation efforts. Prairie dog holes are filled in and marked with <br />pin flags prior to Burrowing owl migration return to the area. Frank said that WF -C filled and marked hundreds of <br />prairie dog burrows south of Meehan draw. Some active Prairie dogs were noted scurrying around on the west <br />side of the pin- flagged area and at the north side of the permit area boundary. <br />Mitigation efforts are geared to assure that burrowing owls are not using the prairie dog burrows prior to topsoil <br />stripping. Topsoil was not in the process of being stripped at the time of the inspection. <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 />Pond 1 was holding a small pool of water at the time of the inspection. This pond was not discharging, <br />nor was there any sign that it had recently discharged. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />The irrigation ditch has been routed around the active mining area. On the west side of the permit area, <br />where the waterline junction is located, some water is dripping and contributing additional moisture to the ground. <br />Healthy Russian knapweed plants are becoming established at this spot. The inspector showed Frank some of the <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />