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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 for the month of July, 2001. The purpose of this inspection is to conduct normal operations and environmental compliance. The weather was clear and warm. AVAILABILITY OF RECORDS: Records were inspected and found to be incompliance. See page 5 of this report for further details. ROADS: Haul roads and the BB road detour was inspected and no problems were noted HYDROLOGIC BALANCE: Mine 7: Ponds 1 and 6 had water in them but only 1 was discharging as normal, all other ponds were dry. Alt ditches and culverts are functianing as designed. Mine 2, Pond 7 had water in it but was not discharging. All ditches and culverts were clear and capable of functioning as designed. Pond 8 is completed. BACKFILL 8 GRADING: B & G was in progress as is normal. No problems were noted. The land continues to be reclaimed to the approved post mining topography map and no low spots were noted. EXPLOSIVES: Records were inspected and found to be in compliance. All blasting procedures are being followed and seismograph's readings are available for each blast. TOPSOIL: Topsoiling this time is being accomplished with truck and shovel as time permits and is being spread by dozers to the proper depth. A visual inspection of the recently topsoiled area indicated that the appropriate depths are being obtained. GENERAL MINE COMPLIANCE: The mine continues to exert an outstanding effort to comply with all rules and regulations of the Colorado DMG. RECLAMATION SUCCESS: The site is scheduled to submit a Phase II & III bond release on the mine 1 area later this summer.