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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 />N - 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 />R - Other <br />R - 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 partial inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, Mining <br />and Safety (DRMS) conducted onJanuary 29, 2014. Jeff Dubbert of Blue Mountain Engergy, Inc.(BME) <br />accompainied the inspection. The weather was clear and ground conditions were partially saturated from snow <br />melt with minor snow cover in shaded areas. Temperatures for the day were around fifty degrees fahrenheit. <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 />Sediment pond DP -1 held water with no discharge. Embankment was stable and vegetated. Both primary and <br />emergency spill ways were clear of debris and in stable working order. Primary and secondary ditches from the <br />upper facility bench were stable with no signs of erosion or cutting. <br />The ditch below the substation and behind the truck warehouse had metal debris pushed into it. All storage <br />material including the metal needs to be removed from the dtich. <br />Ponds PP -1 and PP -2 held water with no discharge. No issues were observed. <br />The berm encompassing the primary substation and laydown area near pond PP -2 was inspected. The berm directs <br />surface run off from the area down the bench before eventually flowing to pond DP -1. No low spots within the <br />berm were located and all sections appeared stable. There were no signs of ponding or sediment deposition along <br />the berm. <br />Culvert under the access road to the Slot Storage area has been crushed on the outlet side. The culvert outlet needs <br />to be reestablished. <br />