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February 26, 2025 C-1981-018/Deserado Mine TJ1 <br /> <br /> <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 2 <br /> <br /> Page 2 of 13 <br /> <br /> <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 />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />R - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br /> <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On-site <br />R - Signs and Markers <br />N - Support Facilities Not On-site <br />N - Special Categories Of Mining <br />R - Topsoil <br /> <br /> <br />COMMENTS <br /> <br />This report documents the Division’s observations taken during a complete inspection of the Deserado Mine <br />conducted on February 26, 2025. This report was written by Todd Jesse of the Division. The operator, Blue <br />Mountain Energy (BME) was represented by Kurt Blunt during the inspection. The weather was partly sunny and <br />around 55° F at the start of the inspection. The ground conditions were very muddy with some snow present. <br />Nighttime temperatures have been above freezing and as a result the ground is no longer frozen but mud. The mine <br />site is partially accessible to travel with some auxiliary roads being too muddy to travel. <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 /> The Halandras Landfill has been backfilled and graded to approximate original contour. No topsoil has <br />been spread on the site. The topsoil pile that remains next to the landfill appears to be of sufficient size to complete <br />reclamation. Volunteer vegetation has grown on the site (Photo 1). <br />FISH and WILDLIFE – Rule 4.18: <br /> Tracks and scat from ungulates was observed in multiple locations throughout the mine site (Photo 2). No <br />songbirds or waterfowl were observed on site. <br /> <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 /> There are three ponds located in the main facilities area: the DP-1 Pond, the PP-1 Pond and the PP-2 Pond. <br />The DP-1 Pond is located on the southern part of the lower facilities bench. DP-1 collects all runoff from the from <br />the three facilities benches. The pond was thawed at the time of the inspection. The embankments appear stable <br />with well-established vegetative cover (Photo 3). There were no erosional concerns identified. Channels that <br />convey water to the pond are in good condition, free of obstruction, and are functioning as designed. The PP-1 <br />Pond is located on the middle bench of the facilities area near the prep plant. The pond was partially frozen and