2011-12-05_INSPECTION - C1981008

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November 21 and 22, 2011 C- 1981- 008/New Horizon Mine MLT • Pond 013 discharges on a continuous basis due to the inflow of water pumped from the pit. The outlet of the discharge structure is a corrugated metal pipe. Water flows from the CMP to Tuttle Draw via a ditch lined with impervious fabric. A Parshall flume with continuous flow measurement is installed in the lined ditch. The water level in Tuttle Draw was relatively high, due to the recent onset of the fall "Pond Run" (Photo 6). GENERAL MINE PLAN COMPLANCE: • Small, temporary piles of coal were present on the backfilled surface of both the Morgan and Western Fuels parcels (Photo 7). Coal is sometimes transported up out of the pit and mixed here before being hauled to the Nucla Generating Station. REVEGETATION — Rule 4.15 Vegetative Cover; Timing: Four head of cattle and three horses were grazing the reclaimed Irrigated Pasture surrounding Pond 008 on the Burbridge property. TOPSOIL — Rule 4.06 Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.063; Redistribution 4.06.4: • The Begay topsoil salvaged during excavation of Pond 013 in late 2007 has been combined into a single stockpile, located east of the pond (Photo 8). SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: Prime Farmland — Rule 4.25 The first phase of soil sampling approved under TR -61 was accomplished on Nov. 22, 2011. A track - mounted excavator was used to dig five separate soil test pits on the Morgan property. Three pits (TP -01, TP -02, and TP -03) were excavated in undisturbed soils that are located to the west of the current pit. These soils will be salvaged as the mine progresses westward. Two more test pits (TP -04 and TP -05) were excavated into the section of undisturbed field that lies to the north of the Frank Morgan home. Due to blast vibration restrictions, this area will not be mined. Each test pit was excavated one bucket -width to a depth of 5 feet. Benches, approximately 2 feet deep, were then excavated on either side of the main pit. This configuration provided increased safety, with improved visibility of and access to the test pits (Photo 9). • The soil scientists (consultants and NRCS personnel) deliberated throughout the process of identifying soil horizons (Photos 10 and 11). A 10% HCl solution was used to identify the presence of Calcium carbonate. Color (moist) was determined, as was texture; soil structure and consistence were also described. Photo 12 shows the completed process for TP -05. • Mike Morgan and JoEllen Turner provided information regarding normal husbandry practices, i.e. deep ripping depth (36 ") and frequency (once in 10 years), and irrigation management. Number of Partial Inspection this Fiscal Year: 3 Number of Complete Inspections this Fiscal Year: 2 Page 4 of 12