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May 14, 2014 C -1981- 018 /Deserado 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 />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />N -Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N -Other <br />R - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N -Topsoil <br />COMMENTS <br />A partial inspection was conducted by Rob Zuber of DRMS on May 14, 2014. The Blue Mountain employee who <br />participated in the field inspection was Scott Wanstedt. The weather was clear and warm. The ground was mostly <br />dry, although 0.82" of rain had fallen the previous weekend (per Scott). <br />FISH and WILDLIFE — Rule 4.18: <br />At the Raw Water Lagoon, an osprey nest was observed on the very top of a power pole. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 />The following ponds were inspected: DP -1, PP -2, RP -1, RP -2/3, RP -4, RP -5A, Last Chance, SS -2, RR -1, <br />and the Raw Water Lagoon. The following ponds were not discharging but held water: PP -2, RP -2/3 (upper part <br />holding water), RP -4, Last Chance, and Raw Water Lagoon. Except for DP -1, the rest of the inspected ponds were <br />dry- <br />DP- I was discharging. No sign of pollutants was observed. This spillway discharges directly to Scullion Gulch, <br />and it is difficult to distinguish between the pond discharge and the water in the creek. It is unclear how flow from <br />this spillway is measured. <br />The structures for all of the inspected ponds, including embankments and spillways, were found to be in good <br />shape, although the embankment of the RR -I Pond is bare in some spots; reseeding (possibly with forage kochia) <br />may be necessary. RP -2/3 will be cleaned this year per Scott Wanstedt. <br />The channel from the Rotary Breaker building to the DP -I Pond was found to be in good shape; no erosion was <br />seen. The ditch above Pond RP -2/3 (northwest side of refuse area) was walked and no problems were observed. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />