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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 />R - 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 />N - Other <br />N - Processing Waste <br />N - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, <br />Mining and Safety (DRMS) conducted on October 30, 2014. Scott Wanstedt of Blue Mountain Engergy, <br />Inc.(BME) accompainied the inspection. The weather was clear with ground conditions dry. Temperatures for the <br />day were around sixty five degrees fahrenheit. This inspection primarily focused on small area exemptions which <br />primarily included nigtorgen injection, degas, exploration and vent shaft pads. <br />BACKFILL and GRADING — Rule 4.14 <br />Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); <br />Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The newly approved nitrogen plant pad has been full graded and constructed. Concrete pads for facility buildings <br />were recently laid. Topsoil markers are needed. <br />Newly approved D -seam dewatering pond expansion has neared completion. At the time of the inspection, <br />finishing details were still needed. No issues were observed. <br />Concrete footers and nitrogen plant pad. <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 />