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November 21 and 22, 2011 C- 1981- 008/New Horizon Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected <br />V= Violation Issued <br />N =Not Inspected R= Comments Noted <br />NA =Not Applicable <br />R - Air Resource Protection <br />R - Availability of Records <br />R - Backfill & Grading <br />N/A - Excess Spoil and Dev. Waste <br />R -Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />N/A - Processing Waste <br />Y -Roads <br />Y - Reclamation Success <br />R - Revegetation <br />N/A - Subsidence <br />N/A - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />N/A - Support Facilities Not On -site <br />R - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a Complete Inspection of the New Horizon Mine conducted by Marcia Talvitie of the <br />DRMS. The inspection occurred over a span of two days. Routine items, such as permit <br />records, sediment ponds, and mine operations, were inspected on Monday, November 21, 2011. <br />Weather conditions were cloudy, cold and windy. <br />On November 22, 2011, the first phase of the soil sampling program approved under TR -61 was <br />accomplished: the sampling and classification of the undisturbed soils on the Morgan property. <br />The day began with site - specific training for all those who would be participating in or observing <br />the project in the field. The weather this day was clear, and temperatures were mild. The <br />following agencies / individuals participated in this endeavor: <br />• Office of Surface Mining, Reclamation and Enforcement (OSMRE) Alex Birchfield and <br />Christine Belka <br />• Natural Resource Conservation Service (MRCS) Steve Park (State Soil Scientist) and Chuck <br />Peacock (Grand Jct. office) <br />• Western Fuels - Colorado (WFC) Lance Wade, Tom Fry, and an equipment operator <br />• Key Agricultural Services (Key -Ag) Aaron DeJoia and Andrew Harley (Consultants to <br />WFC) <br />• Representing the Landowners: JoEllen Turner and Mike Morgan <br />Additional descriptions of the soil sampling activities are provided in the Special Categories of <br />Mining section of this report. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />• The mine's water truck was in operation during the inspection. The truck's tank is filled, as <br />needed, from the elevated tank to which water from the pit is pumped (Photo 1). The <br />elevated tank is situated at the northeast corner of Pond 011, on the Morgan property. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 Page 2 of 12 <br />