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September 30, 2011 C- 1981- 008/New Horizon Mine MLT <br />• Water from the pit continues to be pumped to Pond 013, which discharges directly into Tuttle <br />Draw. The discharge structure, flume, and channel were inspected, and found to be <br />functioning as designed. <br />• Pond 011 was dry. The eastern end of the pond was breached earlier this season by removal <br />of the topsoil portion of the incised bank. The discharge structure at the western end has <br />been retained, available for future use as necessary. <br />GENERAL MINE PLAN COMPLIANCE: <br />• The active pit is currently split, with the northern arm located on the Western Fuels (formerly <br />Johnson) property and the southern arm on Morgan lands. Between the two lies an eastward <br />extension of the Enstrom property, which is not included in the permit boundary. <br />• The shovel was being serviced at the time of the inspection, and was not in operation. It was <br />stationed on the Morgan property, atop "Bench 2 ", and positioned so as to resume free - <br />digging "Bench 1" material (Photo 3). <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />• All Irrigated Pasture reclaimed fields located east of 2700 Road produced two cuttings of hay <br />in 2011, Mr. Fry said. Some fields, e.g. Burbridge, Staats and WFC were being irrigated <br />again, while others (eastern side of San Miguel Power, Benson - South) had bales of hay still <br />distributed across the surface, waiting to be picked up (Photo 4). Mr. Fry was unsure if a <br />third cutting would be taken from any of the fields, or whether they would all be used for <br />winter pasture for cattle. <br />• On the Benson -West and Lloyd parcels, located west of 2700 Road, installation of the <br />irrigation pipeline and headgates has been completed. Mr. Fry said that the fields (portions <br />that will be IP) have been disked (final disking of the Lloyd property was occurring during <br />the inspection), and would be rock - picked this fall. <br />• The trench along the north side of BB Road, that was dug in order to install the irrigation <br />pipeline running west of 2700 Road, has been backfilled and the surface regraded. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />• The northwest corner of the Irrigated Pasture (IP) Reference Area was treated for a <br />Quackgrass infestation in 2010. As noted during the July 2011 inspection, a number of <br />weedy species had appeared in the treated area this summer, in addition to those seeded. The <br />entire IP Reference Area was mowed and baled in July. The fonner Quackgrass site was <br />visited on this inspection, and we observed that primarily desirable species were present <br />(Photo 5). There were, however, a number of Buffalobur plants. Mr. Fry indicated that <br />WFC would be implementing control efforts on this aggressive weed. ( Buffalobur does not <br />appear on the State list of Noxious Weeds, but WFC does not wish for this weed to become <br />established in the reference area.) <br />SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: <br />Prime Farmland - Rule 4.25 <br />• There were no topsoil salvage, stockpiling, or replacement activities occurring on the Morgan <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 Page 4 of 10 <br />