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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 September 18, 2007 by Mike Boulay of the DRMS. Ross Gubka of Western Fuels-Colorado (WFC) was present during the entire inspection. Weather conditions were sunny and warm. Ground conditions at the mine site were damp from recent precipitation prior to this inspection. The Nucla Power Plant was shut down temporarily and therefore there was no coal being hauled from the mine site. Since the power plant was down many of the mine workers were on vacation and there was very little activity at the site. 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. Signs and Markers Mine identification signs were properly displayed at mine site entrances. Topsoil markers and permit boundary markers were in place where required. Roads Haul roads were in good condition. Access roads were maintained but were muddy in some locations due to the recent precipitation. Most areas of the mine site were accessible. Hydrologic Balance Sedimentation Ponds 007, 008, 009, 012, and 014 were inspected. Pond 007 was the only pond discharging. Dischazge from this outfall is primarily the result of water being pumped from the pit. Currently about 450 gpm is being pumped from the pit to Pond 007 for treatment prior to discharge. Pond 008 was retaining a significant amount of water but at a level below the principal spillway. Ponds 009 and 014 were not retaining any water. Pond 012 had a very little amount of water at the bottom. During this inspection iT was noted that at Ponds 009 and 012 some erosion is occurring on the faces of the embankments in the form of rills. This is probably due to the lack of vegetation on the side slopes. The initial seeding on the side slopes and embankment faces never took very well at these two ponds. To ensure compliance with Rule 4.05.9(9) please ensure that the faces of all pond embankments and the surrounding areas are stabilized to protect against erosion. Please conduct the necessary maintenance to dress up the sideslopes and reseed these embankment areas at Ponds 009 and 012 this fall.