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August 31, 2011 C- 1981- 008/New Horizon Mine MLT <br />• Mr. Gubka pointed out that the coal currently exposed on the Morgan property (Photo 2) is of <br />diminished quality - thin partings within the seam are increasing in number. The presence of <br />the partings creates additional challenges for the Nucla generating station. <br />• The mine shovel was down for maintenance, but the drill rig was drilling holes to shoot the <br />parting on the WFC property (Photo 3). <br />• The total thickness of overburden, including Bench 1 material, is decreasing as the mine <br />moves westward. <br />• Mr. Gubka said that WFC is closely monitoring the amount of material available for <br />backfilling the final series of cuts, in order to accomplish the required minimum thicknesses <br />and achieve the desired final surface elevation. Stockpiles on site include Lift A, Lift B, <br />OB I (Bench 1) and Mixed AB (Photo 1). <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />• A contractor was on site, installing the buried 12" welded HDPE line along the BB Road <br />alignment, west of 2700 Road (Photos 4 & 5). This pipeline will provide irrigation to the <br />Lloyd and Benson -West fields by way of spur lines extended onto each property. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />• The reclaimed Irrigated Pasture (IP) fields located east of 2700 Road were in various stages <br />of harvest. Some (Goforth and the NE quarter of San Miguel Power) were in the process of <br />being mowed for the second cutting of the season. The SW quarter of SMPA; Burbridge; <br />and Garvey/WFC fields (Photo 6) had been mowed and baled, although the bales had not yet <br />been picked up. On the NW quarter of SMPA, bales from the second cutting had been <br />removed. At Benson -East, the second cutting was completely finished, and the field was <br />once again being irrigated, using a sideroll sprinkler. <br />• Mowing of the IP reference area had been completed, and the pasture grasses were growing <br />again. <br />SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: <br />Prime Farmland — Rule 4.25 <br />• A fresh strip of Lift A and Lift B soils was salvaged earlier in the month from the Morgan <br />property. Due to the concerns identified by OSM, and direction provided by the Division, <br />WFC stockpiled the Lift A material separately (immediately west) from the large Lift A <br />stockpile that has been building since 2008. The new pile was protected from erosion and <br />loss of the resource by a ditch constructed around the perimeter (Photo 7). Lift B subsoil was <br />added directly to the Lift B stockpile already in existence. <br />• Portions of the Lift B subsoil exposed at the current limit of salvage appeared to have an <br />increased calcic percentage, along with some cemented sand (Photo 8). <br />• Both Lift A and Lift B on the Morgan property are substantially thinner in this section of the <br />permit area than they were in earlier phases of mining. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 Page 3 of 8 <br />