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July 27, 2010 C-1981-008/New Horizon Mine MLT <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> N -Air Resource Protection N -Roads <br /> N -Availability of Records R -Reclamation Success <br /> R -Backfill&Grading R -Revegetation <br /> N -Excess Spoil and Dev. Waste NA -Subsidence <br /> N -Explosives NA -Slides and Other Damage <br /> N -Fish&Wildlife R - Support Facilities On-site <br /> R -Hydrologic Balance N - Signs and Markers <br /> R -Gen. Compliance With Mine Plan NA -Support Facilities Not On-site <br /> N -Other R - Special Categories Of Mining <br /> NA -Processing Waste R -Topsoil <br /> COMMENTS <br /> BACKFILL and GRADING-Rule 4.1411 Contemporaneous Reclamation 4.14.1; Approximate Original <br /> Contour 4.14.2; Highwall Elimination 4.14.1(2)(f);Steep Slopes 4.14.2,4.27; Handling of Acid and Toxic <br /> Materials 4.14.3;Stabilization of Rills and Gullies 4.14.6: <br /> At the northern end of the pit, backfilling operations on the Lloyd property are nearing completion. <br /> There were no active backfilling and grading operations at the time of the inspection. <br /> HYDROLOGIC BALANCE - Rule 4.05E Drainage Control 4.05.1,4.05.2,4.05.3; Siltation Structures 4.05.5, <br /> 4.05.6; Discharge Structures 4.05.7,4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br /> Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage-Acid and Toxic Materials 4.05.8; <br /> Impoundments 4.05.6, 4.05.9;Stream Buffer Zones 4.05.18: <br /> The photographs show puddles of water standing on various surfaces throughout the active operations <br /> area, indicating that the area had recently received a precipitation event of some size. <br /> Water stored in sedimentation ponds 007 and 008 had a distinct greyish-tan color, likely due to runoff <br /> from the recent storm (Photo 1). Pond 011,which currently receives water pumped from the pit,was <br /> clear,with no evidence of a recent influx of sediment. Surface flow into this pond is derived mainly from <br /> undisturbed agricultural areas. <br /> Shallow, muddy-looking water was ponded in the western ends of Pond 009 and Pond 012. <br /> Pond 013 appeared to be dry,with the exception of a small puddle at the western end. <br /> The photographs show no evidence of failure of the various sediment control features (ditches and <br /> ponds). <br /> GENERAL MINE PLAN COMPLANCE: <br /> Mining operations appear to have been shut down, most likely due to the wet site conditions on this day. <br /> Haul trucks were parked, and the shovel was standing on a backfilled bench east of the pit. Within the <br /> pit were two dozers and a motor grader. The drill rig was set up (although possibly not in operation) on <br /> the parting between coal seams, at the northern edge of the Morgan property. <br /> Number of Partial Inspection this Fiscal Year: 1 <br /> Number of Complete Inspections this Fiscal Year: 0 <br /> Page 2 of 7 <br />