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September 24, 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 />N - Availability of Records N - Reclamation Success <br />R - 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 />N - 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 surety release inspection of the New Horizon 2 Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation, Mining and Safety. This inspection was scheduled in accordance with Section 3.032(2) <br />of the Rules, in response to the WFC's SL -16 bond release application. The weather conditions were sunny and <br />warm. The temperature was approximately 85 degrees and the ground conditions were dry. Several areas within <br />the bond release request area were being irrigated and were therefore muddy. These areas were not inspected to <br />prevent unnecessary damage to crops. <br />WFC requested a Phase I bond release for 107.8 acres on the Morgan property. Micheal Morgan and JoEllen <br />Turner were contacted by certified letter and email to coordinate the inspection date. In attendence for the <br />inspection were: Mike Morgan, JoEllen Turner, Frank Ferris (WFC), Trevor Ragsdale (WFC) and Tom Medlin <br />(OSMRE). <br />The SL -16 inspection began at 9:00 a.m. on September 24, 2015 at the mine office. An overview was given about <br />how the bond amount was determined and the three phases of bond release. The SL -16 bond release application <br />and map was also presented and discussed. The inspection parry then walked the Morgan field from the 2700 Rd <br />to reference area by the Morgan house. The field was planted with alfalfa and a cover crop of oats. <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 />A soil profile map was included in the SL -16 application. The map was used to visually verify the <br />topography of the field. A DRMS GPS unit was brought to the inspection to verify the soil topography but it was <br />not working correctly. Ms. Turner and Mr. Morgan said they worked very closely with WFC in the topsoil <br />redistribution and will verify that the maps are correct. They are very pleased with the grading and field leveling <br />and produced a letter during the inspection stating their satisfaction with the topography. The letter is attached at <br />the end of this report. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 4 <br />