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May 11, 2011 C-1981-008/New Horizon Mine MLT <br />However, in spite of the immediate response by the DRMS on May 11, 2011, Ten-Day Notice <br />Number X-11-140-532-OO1TV2 was issued by OSM on May 12, 2011 and received by the <br />DRMS on May 16, 2011. <br />INSPECTION <br />I departed Durango at 10:00 a.m. and arrived at the mine site at 1:00 p.m. Skies were heavily <br />overcast, winds were light to gusty out of the northwest, and there were occasional light rain <br />sprinkles. Ground conditions were wet, and puddles had formed in areas which lack positive <br />drainage. Surface conditions appeared to be more the result of a steady or intermittent <br />accumulation of moisture than what would typically result from a sudden downburst event (no <br />evidence was seen of sediment erosion, transport, and deposition having occurred in either the <br />surrounding area or within the permit). <br />Upon arrival in the Nucla area, I proceeded directly to a vantage point on the southern permit <br />boundary - on BB27 Road, northwest of the Frank Morgan home. Looking northward into the <br />permit area, I observed that the mine shovel was parked on Morgan property, perhaps 50 yards <br />from the fence (Photo 1). The drill rig was visible in the distance, stationed on "Bench 2" <br />overburden on the WFC parcel. The only visible equipment activity was a bulldozer working on <br />one of the ramps leading into the pit. The remainder of pit operations appeared to be shut down <br />due to wet conditions. <br />I reported to the New Horizon Mine office at approximately 1:30 p.m. Lance Wade (Mine <br />Manager) and Ross Gubka (Chief Engineer) were present. Mine personnel were questioned <br />regarding recent soil management activities. Mr. Wade said that no topsoil had been hauled that <br />day and that it was raining hard in the morning. He also said a bulldozer had worked on cleaning <br />up the base of Lift B [top surface of in situ Bench 1] on Morgan property. With respect to <br />scraping topsoil from the truck beds, Mr. Wade explained that this is a routine task, performed <br />one to two times per shift, and is made necessary by the natural moisture contents of the Lift A, <br />Lift B, and Bench 1 materials. <br />Mr. Gubka accompanied me on the remainder of the inspection. <br />SPECIAL CATEGORIES OF MINING - Rules 4.22 through 4.27: <br />Rule 4.25 - Prime Farmland <br />The area of recent soil salvage on prime farmland (Morgan property) was examined in detail, <br />and observations were made regarding equipment tracks and current locations of equipment, <br />in-situ soil conditions, and soil pile locations and conditions. Detailed observations are as <br />follows. <br />• On the Morgan property, a low berm of "Lift A" topsoil was built up along the western edge <br />of the disturbed area, the typical configuration approved in the permit. All Lift A topsoil <br />appeared to have been salvaged from east of the berm, with the exception of a small mound <br />piled at the southernmost end, and another pile near the north end of Morgan property. A <br />berm of "Lift B" subsoil was constructed approximately 15 feet east of, and parallel to, the <br />Lift A berm (Photo 1). The Lift B material in the berm appeared to have a higher percentage <br />of rocks than what has typically been observed (Photo 2). <br />• The surface of the "Bench 1" overburden, which underlies Lift B subsoil, is noticeably closer <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 Page 3 of 14