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October 26, 2011 C- 1981- 008/New Horizon Mine MLT <br />• The ANFO is delivered to the site in a specialized truck, which is outfitted with a boom arm <br />and flexible sleeve. Ammonium nitrate prills (spherical particles) comprise 94% of the <br />mixture. The remaining 6% is diesel fuel, dyed pink to indicate that it is for "off- road" use <br />only. The resulting mixture has a pinkish hue as it is extruded from the sleeve and into the <br />hole (Photo 1). <br />• Backfill consists of drill cuttings that accumulated on the surface as the hole was bored. <br />Once the backfill and ANFO have been placed, the top portion of each hole is filled with <br />stemming. Western Fuels uses washed rock (approximately 1 /2" in size) for backfill. <br />• Mr. Gubka designs each of the blasts, including the number and diameter of the holes, the <br />number of decks (to control ground vibration), the amount of explosives, and the timed <br />delays. The person who operates the drill rig is employed by Western Fuels; all explosives <br />work is handled by a licensed contractor. No explosives are stored on -site. Blast records are <br />maintained at the mine office. <br />FISH and WILDLIFE — Rule 4.18 <br />• Pond 007 was occupied by a significant number of Canada geese. A few unidentified small, <br />white water fowl were seen on the northern shore of the pond. <br />• Five mule deer, two bucks and three does, were observed crossing into the reclaimed <br />Irrigated Pasture on the Benson -South (now owned by Staats) parcel (Photo 2). <br />GENERAL MINE PLAN COMPLANCE: <br />• The shovel was shut down for service at the time of this inspection, so no backfill was being <br />hauled. Coal was, however, being loaded into highway -legal trucks for transport to the <br />Nucla Generating Station. <br />• The pit, as it moves westward, is now split into two distinct limbs. The northern pit lies on <br />property owned by WFC, while the southern pit is on the Morgan property. Between the two <br />limbs lies the Enstrom property, which is north of BB Road and outside the permit boundary. <br />A portion of the permit area south of BB Road and east of Pond 011 will not be mined, in <br />order to leave a corridor for equipment to travel back and forth between the northern and <br />southern limbs. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />• Western Fuels has completed installation of much of the infrastructure that will provide CCC <br />Ditch water to those areas in the northwest quadrant of the permit area which will be irrigated <br />throughout the liability period. Post - mining land uses are shown on Map 2.05.4 -5 of the <br />permit, as revised with PR -6. On the Benson -West parcel, 12.4 acres will be irrigated, using <br />12 shares of Benson's water. The Lloyds' 24 shares will be used to irrigate 25.6 acres of the <br />Lloyd parcel. <br />The proposed irrigation pipe system is illustrated on Map 2.05.4 -5. The new 12 -inch HDPE <br />line originates at the southern end of the 12 -inch line that runs west from the concrete <br />division box, and then south, through the Richards parcel. Mr. Gubka showed us the location <br />of the tie -in, on the south side of BB Road (Photo 3). The new line runs west, along the <br />south side of BB Road, then crosses to the north side of BB in the vicinity of 2700 Road. A <br />series of markers (upright culvert pipes) has been installed to identify the location of the <br />buried pipeline. Air vents have been installed where needed (Photo 4). <br />• On the Benson -West parcel, a 12 -inch HDPE lateral line runs uphill, to the north, a distance <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 1 Page 3 of 11 <br />