2011-12-02_INSPECTION - C1981008

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Mine Site Evaluation Mine Name: New Horizon Permittee: Western Fuels- Colorado Permit ID #: C- 1981 -008 Inspection Date: November 22, 2011 8:00 — 3:30 Weather Conditions: Clear, sunny, dry, temps around 50° Participants: Christine Belka, Office of Surface Mining Reclamation and Enforcement (OSM) badge #182 Alex Birchfield, OSM Aaron DeJoia, Key Agricultural Services (Key Ag) Andrew Marley, Key Ag Michael Morgan, Landowner Steve Park, Natural Resources Conservation Service (NRCS) Chuck Peacock, NRCS Marcia Talvitie, Colorado Division of Reclamation, Mining, and Safety (DRMS) JoEllen Turner, Landowner Lance Wade, Western Fuels- Colorado (WFC) This was a partial oversight inspection. The purpose of the inspection was to monitor soil sampling activities on the undisturbed portions of the Morgan property. Soil scientists from Key Agricultural Services ( "Key Ag" — the contractor hired by WFC) and the USDA Natural Resources Conservation Service ( "NRCS ") worked collaboratively to characterize and sample the soil. Michael Morgan and JoEllen Turner, the landowners, were present and observed all sampling activities. Five test pits were excavated by backhoe —three in the western portion and two in the southern portion of the Morgan property (see Map 2.04.9 -3 of the New Horizon Permit for locations). The pits were approximately 5' deep. Soil scientists from Key Ag and the NRCS delineated the soil horizons, field characterized each horizon, and collected soil samples for laboratory analyses. The excavated face was picked with a rock hammer to prevent horizon contamination by the backhoe. Samples were collected both by natural horizon and by depth as specified in the sampling and analysis plan (SAP). The specified depth ranges were 0 -6 ", 6 -12 ", 12 -18 ", and 18 -54" in 18" increments. A field duplicate sample was taken from test pit 3 at 34 -96 cm (13.4- 37.8 "). Soil samples will be analyzed by Key Ag's laboratory. Results are expected in approximately four weeks. Soil horizons were characterized by depth, texture, color, structure, and reaction (carbonate presence) in the field. No preclusion to root penetration was noted in any test pit. A small rock, approximately 3" in diameter, was found in test pit 3. Because rocks fragments were not found in any relevant quantity, soil scientists did not attempt to estimate the percentage of rock fragments present in the native soil. Unconsolidated green shaley material was also noted in the bottom of test pit 3. This material was in the soil horizon commonly referred to as "Bench 1" on this mine site.