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November 10, 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 R - 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 partial inspection of the New Horizon 2 Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation Mining and Safety. Frank Ferris of Western Fuels -Colorado (WFC) was present for the entire <br />inspection. The weather was sunny and warm in the morning. The clouds moved in during the day and the <br />temperature dropped to near freezing by days end. It snowed during the night. The ground conditions during the <br />second day was muddy with melting snow. <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 />The rills on the northwest part of the Morgan property were in the process of being repaired. Sandbags <br />were added to the area that has been consistently eroding to aid the straw waddles (photo 1). The repairs are being <br />done by the landowner and will continue when the soil is not muddy. <br />Pond 007 contained water but was not discharging. Pond 9 did not contain water. <br />Pond 013 contained water. The discharge flume area was not inspected during this inspection. <br />Culvert 124 has been cleaned. <br />Some of the straw waddles along the BB Road on the north side of the Morgan property need to be repaired. It <br />appears they have been broken and moved by wildlife (photo 2). <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3); Drainage 4.03.1(4)/4.03.2(4); Surfacing and Maintenance 4.03.1(5) and <br />(6)/4.03.2(5) and (6); Reclamation 4.03.1(7)/4.03.2(7): <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />