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III. COMMENTS -COMPLIANCE <br /> Below are comments on the inspection. The comments include discussion of observations made <br /> during the inspection. Comments also describe any enforcement actions taken during the inspection <br /> and the facts or evidence supporting the enforcement action. <br /> This was a complete inspection of the New Horizon Mine conducted by Marcia Talvitie of the <br /> Colorado DRMS. Ross Gubka represented the operator, Western Fuels - Colorado (WFC), and <br /> was present throughout the entire inspection. It had rained throughout most of the previous <br /> night, and was raining at the time of the inspection. Due to the muddy site conditions, mining <br /> operations were shut down for the day. <br /> Availability of Records <br /> A completed copy of the "Availability of Records" form is included with this report. <br /> Roads <br /> All roads within and around the permit area were wet due to the continuing rain fall. Since the <br /> April inspection, the newly constructed alignments for BB Road and 2700 Road had been <br /> surfaced with 12" of subbase and 4" of 1/4" base course. These road segments had not yet been <br /> opened to traffic. Immediately south of the BB/2700 Road intersection, the crossing for the mine <br /> trucks had been prepared for the placement of steel reinforced concrete pavement 12" thick. <br /> In addition, 2700 Road south of the intersection had been built with a thicker layer of subbase to <br /> accommodate the trucks hauling coal to the Tri-State Generating Station. The portion of <br /> reconstructed 2700 Road that proceeds north from the intersection with BB Road descends at a <br /> 9% grade to meet with the BB Road bypass. WFC had been placing angular riprap in the ditch <br /> to control erosion (Figure 1). <br /> Hydrologic Balance <br /> Pond 007 had no discharge to Calamity Draw; the pond was being recharged by mine <br /> dewat6ring and by overflow from the dust control pond. Pond 008 contained water, but was <br /> not discharging. Pond 009 was completely dry. Rills observed on the south slope during the <br /> March inspection had been repaired, and a cutoff ditch routed surface flows from the south to <br /> a pipe buried in the southwest corner of the pond. Pond 011 was also dry. Side slopes were <br /> broadcast seeded earlier in 2008. In accordance with the pending approval of TR-56, <br /> dewatering of the mine will be directed to Pond 011 rather than Pond 007 in late May. Muddy <br /> road conditions prevented access to Ponds 012 and 013. <br /> Irrigation <br /> The West Lateral of the CCC Ditch was running (Figure 2), and providing water to both 26" and <br /> 12" lines (Figure 3). A newly rebuilt pump (Figure 4) was taking CCC Ditch water from the 12" <br /> line at a rate of 1400 gpm and supplying side roll sprinklers on parcels owned by WFC and <br /> Burbridge. Water was being pumped from Pond 007 to irrigate Staats and San Miguel Power <br /> parcels. No irrigation had yet begun on the undisturbed Morgan parcels. <br /> Support Facilities <br /> WFC has investigated options for handling empty oil drums observed during the April 2008 <br /> inspection. The barrels will be thoroughly drained at the site, and then hauled away by a <br /> licensed contractor. <br /> Reclamation Success <br /> WFC indicated that a bond release application for certain portions of the permit would soon be <br /> forth-coming. <br /> New Horizon Mine C-1981-008 13-May-2008 <br /> - 1 - <br />