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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 beginning at 9:00 a.m. on 28-Jan-2009. Ross Gubka represented the operator, <br /> Western Fuels - Colorado, and was present throughout the entire inspection. The weather was <br /> overcast and cold at the time of the inspection. The permit area had received a recent, light <br /> snowfall. <br /> Availability of Records <br /> • Records were available at the mine office for review. A completed DRMS Availability of <br /> Records form is attached to this report. <br /> • Western Fuels provided a copy of their new Annual Reclamation Report for 2008. A second <br /> copy will be mailed to the Denver office of the DRMS. <br /> Roads <br /> • Roads were predominantly frozen solid throughout the permit area. <br /> • WFC is attempting to arrange for the reconstructed portions of BB Road and 2700 Road to <br /> be surfaced with asphalt during the 2009 paving season. They have, so far, been <br /> unsuccessful in locating a contractor who will have a hot mix asphalt plant in the vicinity. <br /> Hydrologic Balance <br /> The DRMS received WFC's Annual Pond Certification Reports for the New Horizon Mine on 20- <br /> Jan-2009. <br /> Pond 007 - The water level was low, and the pond surface was frozen with the exception of a <br /> small area in the northeast corner. The banks and pond slopes are well-vegetated and appear <br /> to be stable. There was no sign of rills or gullies. WFC does not expect the pond to discharge in <br /> the future, now that water from the active pit is diverted to Pond 011. <br /> Pond 008-The pond surface was frozen, and no discharge was occurring. <br /> Pond 009 - Some water had accumulated in the pond, the result of recent warm weather that <br /> melted previous accumulations of snow. The surface was frozen, and no discharge was <br /> occurring (Figure 1). <br /> Pond 011 -This pond continues to receive inflow from the mine dewatering operation. In order <br /> to prevent the outlet valves from freezing, WFC is maintaining sufficient depth of water in the <br /> pond to keep the valves submerged. Once the risk of freezing is no longer a threat, no water will <br /> be stored in this manner. The pond was discharging at the time of the inspection (Figure 2). <br /> Pond 012 - Similar to Pond 009 this pond has apparently received some recent snowmelt, and <br /> the surface has subsequently frozen. The banks, although seeded previously, are very sparsely <br /> vegetated, and kochia appears to be the only specie that succeeds here. <br /> Pond 013-The pond bottom has numerous frozen puddles. The source of water is unknown -it <br /> could be either snowmelt, or groundwater. <br /> New Horizon Mine C-1981-008 28-Jan-2009 <br /> _1_ <br />