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III. COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a complete inspection of the New Horizon Mine conducted on November 7, 2006 by Mike Boulay of the DRMS. Ross Gubka of Western Fuels-Colorado (WFC) was present during the entire inspection. Weather conditions were sunny and cool. Ground conditions at the mine site were dry and stable. Cattle were grazing on the western end of the mine site. The current active pit azea was inspected. At the time of the inspection, drilling in prepazation for blasting bench 2 of the active pit azea was underway. A shovel and trucks were working on a new cut on the bench above the current pit to remove overburden and place this material on the other side of the pit for backfill. Availability of Records All required records were on site and available for review. Please see the attached records checklist at the end of this inspection report. Roads Haul roads and access roads were in good condition throughout the site. Road ditches were dry and well maintained. Culverts were cleaz of sediment and debris and functioning properly. Hydrologic Balance Sedimentation Ponds 007, 008, 009, and 012 were inspected. Pond 007 was the only pond dischazging. Approximately 350 gallons per minute were being pumped from the active pit to Pond 007 for treatment and discharge. Pond 008 was retaining water but the water level in Pond 008 was the lowest that it has been in a while due to the lack of irrigation runoff. Irrigation has been turned off in this area for the time being. Pond 009 was essentially dry; the bottom of the pond was wet from recent precipitation runoff. The south side slope of Pond 009 has some rills and small gullies forming due to the lack of vegetative cover. To ensure the stability of the pond please repair the erosion and stabilize the side slope by seeding. Pond 012 was dry. Support Facilities The surface facilities azea was inspected. The site was maintained and no problems were noted.