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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 />R - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />Y - Roads <br />Y - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - 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 partial inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, Mining <br />and Safety (DRMS) conducted on November 20, 2014. Scott Wanstedt of Blue Mountain Engergy, hic.(BME) <br />accompainied the inspection. The weather was cloudy and ground conditions dry with minor snow cover in shaded <br />regions. Temperatures for the day were around forty five degrees fahrenheit. <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 graded pad for the new nitrogen injection plant has been completed. During the time of the inspection, a crew <br />was construction footers and concrete pads for the nitrogen facilities. <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 />Pond DP -1 is the primary pond for the entire facility area. The pond's embankments were stable and vegetated. <br />The primary discharge is a riser pipe with the inlet was clear of any debris. The pond was not discharging during <br />the time of the inspection. The emergency spill way was well armored with rip rap and a concrete cutoff wall. The <br />main channel from the intermediate facility bench was stabilized with rip rap. No cutting or instability was <br />observed. The beginning of the secondary ditch is constructed with a rock check dam as additional sediment <br />control prior to entering Pond DP -1. No issues were observed with the secondary channel from the same facility <br />bench. <br />The Mine Dewatering pump was not operating during the time of the inspection. Water was present up to the final <br />expansion pond. The Last Chance Pond expansion has been completed but held no water. Disturbed areas related <br />to the expansion construction are still in need of being reseeded. No water has been pumped into the Last Chance <br />Pond expansion from the artificial wetlands section. Two rock checks have been constructed just north of Last <br />Chance Pond as additional sediment control. To the date of this inspection, no water has been discharged from the <br />Last Chance Pond. <br />Ponds SS -1, SS -2, RRS -1 and RR -1 held no water. Embankments were stabilized with vegetation and no erosion <br />was noted. Spillways and related channels were armored with rip rap with no erosion observed. <br />