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December 15, 2015 C-2010-089/New Horizon North 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 N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />R - 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 North Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation Mining and Safety. Frank Ferris of Western Fuels -Colorado (WFC) was present for the <br />entire inspection. It snowed in the morning and was cloudy, windy and cold in the afternoon. The ground <br />conditions were snowy and muddy which limited access to many areas of the mine. <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 />Bench 1 material was being hauled from the bottom of the pit to the western side of the backfill area <br />behind the pit. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />On Aug 28, 2015, WFC self-reported to the Division that on Aug 7, 2015, blast 91825 exceeded the peak <br />particle velocity by 0.01 in/second. The exceedance was recorded 460 feet away near the Garvey property. No <br />complaints were filed. On Dec 14, 2015, WFC conducted blast 41850 which was next to the blast 41825 area. <br />Blast 41850 was 475' from the Garvey property, 15 feet further than 41825. The #1850 seismograph record was <br />reviewed for this inspection. The record showed trans- .7, vert- .71 and long- .59. All parameters were well below <br />the 1.0 limit and therefore were in compliance. WFC lowered the explosive poundage per 8 milliseconds. <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 1 contained water but was not discharging (photo 1). The discharge structure and flume area were <br />free and clear of obstructions (photo 2). <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />