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September 22, 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 R - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading R - 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 N - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon 2 Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation, Mining and Safety on Tuesday, September 22, 2015. This inspection was scheduled in accordance <br />with Section 3.032(2) of the Rules, in response to the WFC's SL -17 bond release application. A coal partial <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 September 22, 2015 at the mine office. The weather conditions were overcast and warm. <br />The temperature was approximately 70 degrees. <br />WFC requested a Phase I, II and III bond release for 5th Street and the BB Road west of the 2700 Road. All the <br />landowners who have property that abut or are adjacent to 5th Street or the BB Road were invited to attend the <br />inspection. All the parties were contacted by certified letter and a telephone call to coordinate an inspection date. <br />hi attendence for the inspection were: Nancy Enstrom, Carol Enstrom, Pat Enstrom, Mike Morgan, JoEllen <br />Turner, Elmer Burbridge, Roseanne Guire, Jim Guire, Mike Moore, Joann Moore, Mel Staats, Dean Cooper <br />(Montrose Cty), Bobby Reeder (Montrose Cly), Frank Ferris (WFC) and Tony Tennyson (WFC). OSMRE and the <br />City of Nucla were also invited, but were not able to attend. The details and comments about the SL -17 bond <br />release inspection are continued in the Roads section below. <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 7 contained water and was discharging. The CO2 tanks were stationed at the pond for controlling <br />pH but were not treating the water at the time of the inspection. The underground bypass at the V notch weir that <br />was noted in the last inspection report has been repaired (photo 1). There are some Russian olive trees on the <br />banks of Pond 7. The removal of these trees and the treatment of the stumps is considered normal husbandry <br />practice and will not re-initiate the liability period as per Rule 4.15.7(5)(b). <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 5 <br />