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i <br /> 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 Partial Inspection of the New Horizon Mine conducted by Marcia Talvitie of the <br /> Colorado DRMS beginning at 2:30 p.m. on Monday, 17 August 2009. Tom Fry represented the <br /> operator, Western Fuels - Colorado, and was present throughout the entire inspection. The <br /> inspection began at 2:30 p.m. at the mine office, and concluded at 5:00 p.m. Weather <br /> conditions were clear and hot. <br /> Permittinq <br /> • SL-1 1 received final approval by the Division on 28-Jul-2009. <br /> • Issuance of the RN-05 Decision and Findings is imminent. <br /> Hydrologic Balance <br /> • The new 12" buried irrigation line has been installed, delivering water to the Burbridge <br /> parcel. The line runs south along the property line between Burbridge and San Miguel <br /> Power. <br /> • Pond 007 has been discharging steadily throughout the summer. Tom mentioned that <br /> the pH tends to be high, but it is also high in the flow from the West Lateral ditch where it <br /> enters the permit area. <br /> • The permit area received one-half inch of rain three days prior to the inspection. The <br /> water in Pond 011 appeared somewhat clouded, perhaps due to the recent storm <br /> event. The pond was discharging at the time of the inspection. <br /> • The western half of the bottom of Pond 012 was covered with water. Cattails continue to <br /> thrive in the eastern half. <br /> • Pond 013 continues to have a few puddles on the bottom. <br /> Topsoil <br /> • During construction of Pond 011 in early 2008, topsoil and overburden was excavated <br /> and stockpiled immediately east of the pond. The eastern end of the pile is essentially a <br /> mixture of A and B horizon soils. The western half is very rocky, and although labeled as <br /> topsoil, is in reality more similar to Bench 1 material. Tom said that Ross Gubka has <br /> discussed the issue with Mike Morgan, and both have agreed that the east half will be <br /> treated as "B" horizon,while the western portion will become pit backfill. <br /> General Mine Plan Compliance <br /> • Previous inspection reports have noted the increasingly close proximity of the active pit <br /> operations to the Morgan home, and the efforts being undertaken by WFC to limit <br /> seismic concerns at the structure. At the southern end of the most recent cut, WFC <br /> opted to leave a block of coal in place rather than risk exceeding allowable movement. <br /> Topsoil and overburden were stripped from this zone, but the coal was not shot or <br /> removed. <br /> Fish & Wildlife <br /> • A large flock of Canada Geese was enjoying themselves at Pond 007. <br /> • While we watched, a group of five slender wading-type birds made multiple circles over <br /> Pond 007, but flew off without setting down. The birds were possibly white-faced ibis. <br /> New Horizon Mine C-1981-008 17-Aug-2009 <br /> .1- <br />