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August 18, 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 N - Roads <br />R - Availability of Records R - Reclamation Success <br />R - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste R - Topsoil <br />COMMENTS <br />This was a complete inspection of the New Horizon 2 Mine conducted by Brock Bowles of the Colorado Division <br />of Reclamation, Mining and Safety on Tuesday, August 18, 2015. This inspection was scheduled in accordance <br />with Section 3.032(2) of the Rules, in response to the operator's SL -15 bond release application. A coal complete <br />inspection was conducted simultaneously with the bond release inspection over a two day period. The inspection <br />began at 9:00 a.m. on August 18, 2015 at the mine office. The weather conditions were clear but smokey from <br />wildfires in California. The temperature was approximately 85 degrees. <br />WFC requested a Phase II bond release for parts of the Richards property, the Benson east property, a small parcel <br />SE of the 2700 and BB Road intersection and a large parcel NW of the 2700 and BB Road intersection. The <br />parcels SE and NW of the 2700 and BB Road intersection are owned by WFC. <br />In attendence for the inspections were: Frank Ferris (WFC), Tony Tennyson (WFC), Trevor Ragsdale (WFC) and <br />Breck Richards (land owner representative). Mr. Benson was contacted about the inspection but was unable to <br />attend. OSM was also contacted, but was not able to attend. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records were checked after the ground inspection. All required records were on file and available for <br />review at the mine office. No problems were noted with the records review. Please see the availability of records <br />at the end of this report. <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 />Pond 11 has been backfilled and graded (photo 1). <br />A settling crack along the 2700 Road on the Burbridge property has been repaired. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 10 <br />