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December 3, 2015 C-1981-018/Deserado Mine CCW <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 />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 />Y - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance Y - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste Y - Topsoil <br />COMMENTS <br />This was a complete inspection of the Deserado Mine, conducted on December 3, 2015. The inspection was <br />conducted by Clayton Wein of the Colorado Division of Reclamation, Mining and Safety (the Division). Scott <br />Wanstedt of Blue Mountain Energy, Inc. (BME) attended the inspection. The weather was clear with a light <br />breeze and a temperature of about 30 degrees farenheight. There was approximately 2 to 3 inches of snow on the <br />ground at the mine site. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records for the Deserado Mine are kept with Scott Wanstedt in the main mine office. The records <br />were in Good condition, for more information please see the Availability of Records form at the end of the 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 />At the time of the inspection, work was being done to re -contour the intersection between County Road 65 <br />and the Haul Road. The northwest corner and northeast corners have hillsides that were being reduced to improve <br />visibility for traffic. The northwest corner had been reduced and regraded as designed (Photo 1), shown on Map <br />58 of the Deserado permit. Work on the northeast and southwest corners was observed during the inspection <br />(photos 2a and 2b). The work was being completed by an excavator and a loader. The material removed from the <br />northwest and northeast corners was moved to the southwest corner of the intersection, known as Bister 6 (Map <br />58). The material was placed, spread and compacted by the loader at Blister 6. The re -contouring of the <br />intersection was approved under Minor Revision 168. <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 />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 10 <br />