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January 13, 2015 C- 1981- 008/New Horizon Mine BFB <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 />R - Roads <br />R - Availability of Records <br />N - Reclamation Success <br />R - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - 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 />R - 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 Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation Mining and Safety. Frank Ferris of Western Fuels- Colorado was present for the entire inspection. <br />The records were checked on 1/13 because it was snowing. The mine site was inspected on 1/14 which was <br />overcast and cold. The ground conditions were very muddy which limited access to many areas. No reclamation <br />or maintenance activities were being done during the inspection. <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 are more organized and easier to <br />check than they were in the previous inspection. <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 trench between the BB Road and Pond I I was backfilled (photo 1). The trench was dug to facilitate <br />an irrigation drain line for the irrigation system on the Morgan property. <br />The highwall area by pond 13 was not inspected due to very muddy conditions. <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 area around Pond 13, the trench drain and ditch C9 was not inspected due to muddy conditions. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 5 <br />