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May 11, 2011 C-1981-008/New Horizon Mine MLT <br />• The precipitation data indicate that a total of 0.29 inches of rain fell on May 11 between 3:15 <br />a.m. and 10:30 a.m. Corroborating precipitation data is available online from a station <br />located at the Nucla airport. The DRMS obtained unofficial data from the website for May <br />11 (Attachment #4). <br />• Based upon the available evidence, including ground observations, precipitation data, and <br />operator statements, it appears that Lift A topsoil and Lift B subsoil salvage operations were <br />conducted on May 10, and the operations were conducted in dry conditions. It also appears <br />that no soil hauling occurred on May 11, although some dozing of Lift A and/or Lift B <br />material did occur in the morning of May 11. These dozing operations appear to have been <br />of short duration, and there is no evidence that any soils were damaged. Rather, the work <br />done on May 11 appears to have been done to ensure that the physical and chemical <br />properties of the remnant topsoil and subsoil would be protected and erosion would be <br />minimized, so that the soils could be safely removed at a later time. It also appears that on <br />the morning of May 11, the shovel was trammed across the top surface of in situ Bench 1 <br />overburden. There are no restrictions for such operations on Bench 1. <br />In conclusion: the DRMS found no evidence that topsoil and subsoil salvage operations were <br />conducted in violation of 4.06.2, or when soils were saturated, or in any manner that caused <br />damage to the physical and chemical properties of the soil resource. <br />GENERAL MINE PLAN COMPLANCE: <br />Mining (drilling and blasting) activities appear to be currently located in Cut 96/96B as, <br />illustrated on Map 2.05.4-1-2. Topsoil salvage operations (Lift A and Lift B) are nearing <br />completion on Cut 97B. <br />• At the conclusion of the inspection, we observed that the mine's shovel was being moved <br />from where it had been parked throughout the day, down into the pit, to the top of Bench 2 <br />overburden (Photo 8). Soil conditions on top remained too wet to complete the salvage of <br />Lifts A and B, so the shovel would be excavating Bench 1 overburden material from the <br />Morgan property during the afternoon shift. One bulldozer and one front-end loader were at <br />work inside the pit, separating and stockpiling the coal resource exposed (Photo 9). <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage - Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />• The water level in Pond 007 had risen sufficiently such that discharge was occurring. <br />Irrigation tail water was flowing into the pond from the reclaimed San Miguel Draw; the <br />pond discharges into Calamity Draw. <br />• A rain gauge (Photo 10) is stationed on top of the embankment for Pond 009, in the vicinity <br />of the outlet structure. Mr. Gubka explained that the apparatus records precipitation data at <br />regular intervals, and that the data is downloaded monthly onto a handheld device. A second <br />rain gauge is located near Pond 007. These two rain gauges are separate from the weather <br />station installed at the mine office. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 Page 5 of 14