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December 28, 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 N - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - 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 />R - Processing Waste N - Topsoil <br />COMMENTS <br />This was an aerial inspection of the Deserado mine, conducted on December 28, 2015. The photographs were <br />taken by Harry Ranney of the Colorado Division of Reclamation, Mining and Safety. The conditions of the site <br />appeared to be snow covered with clear weather. The temperature for the day was 8 degrees fahrenheit. <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 />During the inspection ponds DP -1, PP -1, PP -2, SS -1, SS -2, RR -1, RR -2, RP -1, RP -2/3, RP -4 and RP -5 <br />were completely covered in snow (Photos 1 and 2). The snow cover makes it difficult to determine if the ponds <br />were discharging. There were no indications of instability at any of these ponds. <br />The B -Seam dewatering system was mostly snow covered, including Last Chance Pond, but the first five cells <br />were partially iced over. The open water in the first two cells suggest that recent pumping had occurred into the <br />dewatering system (Photo 3). <br />SDH -3, the D -Seam dewatering system, was active during the inspection. The three cells of the system were <br />impounding water, there was not any ice on the pond cells. The dewatering system appeared to be discharging, the <br />amount could not be determined by the photograph (Photo 4). Water discharging from the first cell into the <br />second cell of SDH -3 appears to have breached a small section of the riprap channel and has created a new <br />channel parallel to the riprap one (Photo 5). Please fix this to ensure the water discharges through the <br />riprap channel. All Pond embankments were covered in snow, there were no indications of instability. <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Refuse piles RP -2/3/4 and RP -5 were covered in snow at the time of the inspection. The winter stockpile <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 7 <br />