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May 22, 2018 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 <br />R - Roads <br />N - Availability of Records <br />Y - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />R - Subsidence <br />R - Explosives <br />N - Slides and Other Damage <br />R - Fish & Wildlife <br />R - Support Facilities On-site <br />R - Hydrologic Balance <br />Y - Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On-site <br />N - Other <br />N - Special Categories Of Mining <br />R - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Deserado Mine conducted on May 22, 2018. The inspection was completed by <br />Clayton Wein of the Colorado Division of Reclamation, Mining and Safety (the Division). Scott Wanstedt of Blue <br />Mountain Energy (BME) accompanied the inspection. The weather was overcast and rainy. The temperature was <br />70 degrees fahrenheight and the ground conditions were mostly dry. <br />FISH and WILDLIFE —Rule 4.18: <br />During the inspection of the site a couple of deer were spotted at the B -Seam Dewatering System #2. <br />Another group of deer were spotted on top of RP -5a. An osprey was spotted in a nest on top of a power pole <br />located at the Raw Water Lagoon. <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 RS -1 sump (Photo 1) and the RR -1 pond are located at the southern end of the loadout. Both the <br />sump and the pond were observed to be dry. The embankments were stable and well vegetated. There were no <br />indications of erosional features. <br />- The SS -1 and SS -2 ponds are located at the slot storage. The ponds were dry during the inspection. The <br />embankments were well vegetated and stable. No erosional concerns were noted. <br />-The B -Seam Dewatering System #2 was holding water at the time of the inspection. The water was impounded <br />in the second cellof the system. No discharge was occurring to the final cell or from the system. The outlets for <br />the system were clear of debris and in good repair. The embankments of the ponds were in good condition and <br />stable. There were no erosional features observed. Some vegetation is staring to grow on the embankments. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 6 <br />