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AMW W1,7 <br />AM <br />Environmental Scientists and Engineers, LLC <br />August 12, 2010 <br />Mr. Ross Gubka <br />Western Fuels Colorado LLC <br />Box 628 <br />Nllcla Colorado 81424 <br />Subject: Response to Notice of Violation <br />New Horizon Mine <br />Walsh Project No. 900822.0001.010 <br />Dear Mr. Gubka: <br />RECEIVED <br />Ift* end ? <br />#a* I <br />Walsh Environmental Scientists & Engineers, LLC (Walsh) has performed a limited soil investigation <br />at the New Horizon Mine in Nucla, Colorado under contract to Western Fuels - Colorado LLC (WFC). <br />This letter describes investigation techniques and results. The investigation was in response to Notice <br />of Violation (NOV) CV-2010-003 issued by the Colorado Division of Minerals and Geology. <br />Walsh inspected the site with assistance of WFC personnel, and inspected soil pits excavated by a <br />contractor to WFC. Inspections were designed to address the Steps Necessary to Abate Violation <br />outlined in the NOV. The inspections are described in the following sections. <br />NOV Step 1- This step required resampling topsoil at sampling locations TS-91 through TS-101 and <br />TS-103 for calcium carbonate (CaC03), selenium, and % coarse fragments. Pits excavated by WFC at <br />the previous sampling locations were inspected by Walsh. Each pit was inspected by sweeping off a <br />face of the pit, measuring the depth of the pit and marking the apparent topsoil depth, visually <br />estimating the percent boulders, stones, and cobbles using United States Department of Agriculture <br />(USDA) criteria, obtaining a full-thickness topsoil sample and placing it into a graduated sieve with a <br />2-millimeter final sieve size, and sieving the soil into a bottom pan. The volume percent of soil being <br />caught in the 2-mm and larger sieves was estimated, the sieve pans and excavation were photographed, <br />and two samples of the less than 2 mm fraction were obtained for laboratory analyses. No boulders <br />(>25 inches) were observed in any soil pit. All field data were recorded on field data sheets, <br />Samples were analyzed for selenium by Key Laboratories of Grand Junction, Colorado, and calcium <br />carbonate by Servi-Tech Labs of Hastings, Nebraska, with the results recorded in Table 1. No <br />exceedances of criteria listed in the permit Table 2.05.4(2)(d)-1 Spoil and Soil Suitability Criteria were <br />noted. Laboratory results and chain-of-custody forms are attached to this letter. Results are <br />summarized in 'fable 1. <br />NOV Step 2 - This step required resampling the Bench 1 Subsoil Substitute Topsoil (formerly referred <br />to as "suitable subsoil") sites on the Lloyd property at sample points NHSS-238, -239, -240, and -241, <br />and analyzing the soil for saturation percent, SAR, CaC03, selenium (Se), and coarse fragments. Pits <br />Western Slope Division: <br />535 Grand Avenue . Grand Junction, Colorado 81501-2790 . Phone (970) 241-4636. FAX (970) 241-4312 . walshenv.com <br />Corporate Office: <br />4888 Pearl East Circle, Suite 108 . Boulder, Colorado 80301-2475 . Phone (303) 443-3282 . FAX (303) 443-0367