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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 />Y - 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 July 23, 2015. Scott Wanstedt of Blue Mountain Engergy, Inc.(BME) <br />accompainied the inspection. The weather was clear and ground conditions were dry. Temperatures for the day <br />were around eighty five degrees fahrenheit. This inspection was a special focus on the Deserado Mine refuse piles <br />and associated facilities. <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 refuse piles were well graded. All refuse piles were sloped to allow surface drainage to be directed to <br />perimeter ditches. <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 />All sedimentation ponds associated with the refuse piles were inspected. Pond RP -1 collects runoff from the fully <br />reclaimed refuse pile RP -1. The pond was dry and so no discharge was occurring during the inspection. Pond <br />embankments were stable and well vegetated. No signs of erosion or slumping along the embankments were <br />encountered. The primary spillway consists of a riser pipe with an anti -vortex attachment. The emergency spillway <br />is an armored cut along the primary embankment. Both spillways were stable with no issues observed. <br />Pond RP -2/3 collects runoff from refuse pile RP -2/3. The pond consists of three cells with two collecting initial <br />runoff from refuse pile RP -2/3 before reaching the larger third pond cell. Each cell held minimal water with no <br />discharge. Each of the ponds embankments was stable. Discharge points from the upper two cells into the third <br />were stable with no issue. The primary discharge is a riser pipe with an anti -vortex attachment. The emergency <br />spill way is an armored discharge channel located at the upper western cell of the pond. No issues were observed <br />with both discharge points. <br />Ponds RP -4 and RP -5 were both dry. Embankments were stable and vegetated. Pond RP -4 has a combination <br />primary and emergency spillway. The spillway was well armored and no cutting or erosion was observed. RP- 5 <br />has a riser pipe primary spillway with an emergency channel discharge point. The emergency is well armored with <br />