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July 27, 2010 C-1981-008/New Horizon Mine MLT <br /> RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br /> A series of depressions were visible on the surface of the reclaimed Benson parcel located immediately <br /> east of 2700 Road and north of BB Road. The features are likely due to differential settlement having <br /> occurred over time. The post-mining land use is irrigated pasture, and the depressions were of sufficient <br /> depth to retain water. (Photo 2). <br /> REVEGETATION-Rule 4.150 Vegetative Cover;Timing: <br /> Irrigated pasture (IP) areas on Benson-East and east of San Miguel Draw appear to be well into their <br /> second growth for the season. The remainder of the IP areas south of BB Road and east of 2700 Road <br /> appear to have not yet been completely irrigated following the first cutting (Photo 1). In earlier <br /> discussions with Western Fuels, Mr. Gubka indicated that the first cutting was delayed for these fields in <br /> order to accomplish vegetation sampling for bond release immediately prior to harvest. <br /> The IP reference area located just outside the southeastern corner of the permit appeared well irrigated <br /> with the exception of a drier zone in the southern 1/3rd of the area (Photo 3). <br /> Fields reclaimed to dryland pasture (DP) post-mining land use appeared to be extremely dry. <br /> SUPPORT FACILITIES - Rule 4.04: <br /> Support facilities located at the eastern end of the permit area were neat orderly (Photo 3). There was <br /> no evidence of surface contamination due to the presence of oil products. <br /> The top surface of "Mount Nucla",the box cut spoil pile, continues to be used as a storage area for <br /> miscellaneous materials. <br /> SPECIAL CATEGORIES OF MINING- Rules 4.22 through 4.27: <br /> Prime Farmlands (Rule 4.25) <br /> On the Morgan property (Photo 4), "Lift A" topsoil had been stripped westward to the limit beyond <br /> which crop irrigation is occurring this season. "Lift B" topsoil had been stripped westward as far as WFC <br /> was able,while leaving a bench in place behind the Lift A stripping. A large width of "Bench 1" material <br /> was exposed, and it appeared that extraction of coal was nearly complete along the current cut. <br /> Lifts A and B have been stockpiled separately on the Morgan property to the east of the pit. It appears <br /> that no distribution of prime farmland topsoil has occurred since late 2009. <br /> TOPSOIL- Rule 4.06❑ Removal 4.06.2; Substitute Materials 4.06.4(4);Storage and Protection 4.06.3; <br /> Redistribution 4.06.4: <br /> On the Lloyd parcel, located north of BB Road, "Mixed" topsoil that had been previously stockpiled in <br /> long linear features had been recently dozer-pushed and spread out to the west (Photo 6). Spreading <br /> of topsoil was not quite complete at the far northern end, and the ripped surface of the Bench 1 surface <br /> spoil was visible. <br /> RECLAMATION PLAN COMPLIANCE-Rule 4.13 <br /> Number of Partial Inspection this Fiscal Year: 1 <br /> Number of Complete Inspections this Fiscal Year: 0 <br /> Page 3 of 7 <br />