2011-04-27_INSPECTION - C1981008 (2)

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April 26, 2011 C- 1981- 008/New Horizon Mine MLT • Water pumped from the active pit continues to be routed to Pond 011, via the elevated water storage tank. Mr. Gubka said that the WQCD has authorized the transfer of pit water to Pond 013 beginning on May 1, 2011. Mine water will continue to be pumped to the storage tank near Pond 011; from there it will be piped to Pond 013. The elevation drop, or fall, from the tank to Pond 013 is only 20 feet. The operator would prefer to accomplish the transfer through gravitational flow alone; however, use of a pump may be necessary. • Pond 009 was dry; muddy conditions prevented access to Ponds 012, 013 and 015. • Construction of Pond 015 has been completed, and Mr. Gubka is currently working on the "As- Built" documents. RECLAMATION SUCCESS - Rule 4.15, Rule 3: • A portion of the 80 -acre parcel owned by San Miguel Power Association (surrounding Pond 007) was included in the SL -12 application for Phase III bond release. SMPA is reportedly considering the construction of a solar panel array, once bond release is achieved. • None of the parcels (Staats, Benson -S, Goforth, SMPA) that are being considered for Phase III bond release were being irrigated at the time of the inspection. REVEGETATION — Rule 4.15 Vegetative Cover; Timing: • At the IP Reference Area, gated aluminum pipe had been laid in to form two laterals off of the main line, allowing irrigation of the northern half of the reference area (Photo 2). The portion of the IP Reference Area treated for Quackgrass in 2010 had been furrowed, and was being irrigated (Photo 3). • Several fields were being irrigated using sideroll sprinklers: Burbridge, Western Fuels, and Benson -East. • The NH Mine 1 permit area, a.k.a. the dryland pasture "Rice" tract, was greening up nicely (Photo 4). This area has been proposed for inclusion in the New Horizon North permit area. A sign was posted on the fence, notifying the public, as part of the NHN Montrose County special use permit process. SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: 4.25 - Prime Farmlands • There were no topsoil salvage, stockpiling, or redistribution activities occurring at the time of the inspection. • Conditions within the permit area were wet, due to recent and current precipitation in the area. Consequently, we did not attempt to drive across the top of the in -situ Lift B subsoil. • Lift A and Lift B stockpiles appeared to be stable with respect to erosion. Mr. Gubka said that WFC has been making process on hand - seeding the piles. TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; Redistribution 4.06.4: • There were no active topsoil handling operations at the time of the inspection. Number of Partial Inspection this Fiscal Year: 7 Number of Complete Inspections this Fiscal Year: 3 Page 3 of 6