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January 13, 2015 C- 2010- 089/New Horizon North Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />R - Air Resource Protection <br />R - Roads <br />R - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />R - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a complete inspection of the New Horizon North Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation Mining and Safety. Frank Ferris of Western Fuels- Colorado was present for the entire <br />inspection. The records were checked on 1/13 because it was snowing. The mine site was inspected on 1/14 <br />which was overcast and cold. Coal was being hauled from the mine site. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The roads were wet from recent precipitation and no dust was being created from mine activity. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked before the ground inspection. All required records were on file <br />and available for review at the mine office. No problems were noted with the records review. Please see the <br />availability of records at the end of this report. The records at the mine office were more organized and easier to <br />check than they were in the previous inspection. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />An overburden, bench 2 blast was observed on 1/14/2015 at 1:57 pm. The blast was located <br />approximately in the middle of the highwall. Three short whistles were heard before the blast and one long steady <br />whistle was heard after the blast as advertised in the Forum Newspaper. <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 001 did not contain water (photo 1). <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />