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December 12 -15, 2011 C- 1981- 008/New Horizon Mine MLT <br />made, and distribute the draft text to WFC, OSM and DRMS personnel for review and <br />comment. <br />Partial Inspection <br />A routine partial inspection was conducted by Marcia Talvitie and Jared Ebert on Thursday <br />morning, December 15. Ross Gubka was available to escort us on the mine property. The sky <br />was clear and the conditions were chilly. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />On Tuesday, December 13, an interburden blast was shot on the Western Fuels parcel north <br />of BB Road. The blast was clearly visible from our vantage point on top of the Lift B. We <br />did not observe any yellowish smoke, indicating incomplete combustion of the ANFO, but <br />due to the direction of the wind, we detected a light, sulfurous odor a few minutes after the <br />blast. <br />FISH and WILDLIFE — Rule 4.18: <br />• Mule deer were sighted frequently throughout the permit area and surrounding vicinity, each <br />of the four days on site. <br />On December 14, we observed at least four large groups of Canada geese flying overhead, <br />from west to east. <br />GENERAL MINE PLAN COMPLANCE: <br />During the December 15 inspection, Mr. Gubka drove us down into the pit to show us the <br />highwall. He explained that the coal quality is diminishing on the Morgan property as the pit <br />moves westward. There is an increase in stringers of shaley material within the Lower <br />Dakota seam. <br />• Bench 2 overburden (which requires blasting) is presently running at 52 feet thick on the <br />Morgan property and 22 feet thick on the Western Fuels property. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3) / 4.03.2(3); Drainage 4.03.1(4) / 4.03.2(4); Surfacing and Maintenance <br />4.03.1(5) and (6) / 4.03.2(5) and (6); Reclamation 4.03.1(7) / 4.03.2(7): <br />• The Haul Road surfaces were somewhat slick due to the snow that fell during the week. A <br />motor grader was utilized to trim the wet surface material, pushing it aside to create a more <br />secure driving surface. <br />SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: <br />Rule 4.25 - Prime Farmland <br />• Lift B subsoil salvaged in the most recent campaign had been stockpiled separately from, and <br />immediately west of, the existing large Lift B stockpile (Photo 6). This material was already <br />represented by the sampling of Undisturbed soil that took place on November 22, 2011; <br />piling it separately eliminated the potential of its being incorporated into the sampling of the <br />stockpiles that was to (and did) occur during this inspection. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 Page 4 of 8 <br />