2011-05-23_INSPECTION - C1981008 (2)

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May 11, 2011 C- 1981- 008/New Horizon Mine MLT Inspection Topic Summary NOTE Y=Inspected N Not Inspected R�Comments Noted V=Violation Issued NA Not Applicable Y - Air Resource Protection N - Availability of Records N - Backfill & Grading N - Excess Spoil and Dev. Waste N - Explosives N - Fish & Wildlife R - Hydrologic Balance R - Gen. Compliance With Mine Plan R - Other NA -Processing Waste R -Roads N - Reclamation Success R - Revegetation NA - Subsidence NA - Slides and Other Damage N -Support Facilities On -site Y -Signs and Markers NA - Support Facilities Not On -site R - Special Categories Of Mining R -Topsoil This was a Partial inspection of the New Horizon Mine conducted by Marcia Talvitie of the DRMS. BACKGROUND This inspection was conducted in response to information received by the DRMS from the Denver Field Division of the Office of Surface Mining (OSM) on the morning of May 11, 2011. Specifically, at 9:07 a.m. on May 11, Ken Walker (OSM) left a recorded voice message on the telephone extension for David Berry. Retrieval of the message by Mr. Berry was minimally delayed because Mr. Berry was attending a hearing away from the immediate office location. The 9:07 a.m. message from Mr. Walker indicated that OSM had received a complaint from JoEllen Turner alleging that the operator, Western Fuels — Colorado (WFC) was handling soils in heavy rain. Mr. Walker suggested in the voice mail message that the operations should be shut down. Upon retrieval of the message, Mr. Berry immediately notified Sandy Brown of the issue. Ms. Brown was directed to follow up on the complaint, as Mr. Berry was required to return to the hearing. Ms. Brown did so, and immediately dispatched Marcia Talvitie from the DRMS Durango Field Office to conduct this inspection. Ms. Brown contacted Mr. Walker by phone to inform him of the DRMS's immediate response, and then further confirmed the DRMS's action with an email to Mr. Walker at 9:54 a.m. Mr. Walker responded to the DRMS with a subsequent email to Mr. Berry and Ms. Brown at 10:28 a.m. which indicated that Ms. Turner had left a voice message (and sent a fax) to the OSM complaining about topsoil salvage in wet conditions. The fax, as transcribed by OSM in the 10:28 a.m. email to the DRMS, read as follows: "It is a quarter to nine. Last night it was raining and they were finishing up our A Lift, having to scrap the beds of the truck. Today, it is pouring down rain, and the shovel is sliding, and the Cat is pushing our B Lift. By the time the State sends Marcia five days from now, it will be 70 degrees, bone dry, and we will be done." Later in the day, Mr. Berry also contacted Mr. Walker by telephone to confirm the response undertaken by the DRMS. At no time during any of the telephone conversations with OSM, nor in subsequent emails, was it mentioned by OSM that a Ten -Day Notice would be issued. Number of Partial Inspection this Fiscal Year: 8 Number of Comylete Inspections this Fiscal Year: 3 Page 2 of 14