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February 17, 2016 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 />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />R - Fish & Wildlife N - 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 />N - Processing Waste N - 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 cool. The temperature was about 40F. The ground was mostly frozen with <br />a soft layer of mud on the surface. Most areas of the mine were inaccessible due to the muddy conditions. <br />FISH and WILDLIFE — Rule 4.18: <br />A large herd of elk was grazing on the WFC and TMR4/7 properties within the disturbance boundary, <br />south of the BB Road (photo 1). Approximately 150 head of elk were counted. <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 />Ponds 7 and 9 contained water but were not discharging. <br />Pond 8 contained water, was frozen and was not discharging. <br />Ponds 12 and 13 were inaccessible due to muddy ground conditions. <br />Several lengths of wattles have be moved by the elk on the northern boundary of the Morgan property along the <br />BB Road (photo 2). Elk tracks were seen in the Morgan's field and on both sides of the BB Road indicating that <br />the herd seen has been grazing in this area. The wattles need to be repaired and reset. <br />On the northwest corner of the Morgan property, several rills have formed under the wattles (photo 3). The rills <br />need to be repaired and the wattles need to be reset. The small black plastic culvert needs to be cleaned out and <br />the small sump area needs to have the soil removed. The repairs were discussed onsite with Frank Ferris (WFC), <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 3 <br />