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January 11, 2012 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 />N - Air Resource Protection <br />N - Availability of Records <br />Y - Backfill & Grading <br />NA - 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 />NA - Processing Waste <br />Y -Roads <br />R - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon Mine conducted by Marcia Talvitie of the <br />Division on Wednesday, Jan. 11, 2012. Skies were clear, and temperatures were chilly due to a <br />light breeze that was blowing. Ross Gubka represented the operator, Western Fuels - Colorado, <br />during the inspection. <br />During a recent inspection, Mr. Gubka had mentioned that the Lloyd parcel, located west of 2700 <br />Road and north of BB Road, was up for sale. WFC has now purchased the property, together <br />with the 24 shares of water the Lloyd family owned. The company has not yet determined <br />whether it will request a change to the approved post- mining land use for this parcel. <br />PERMITTING UPDATE: <br />TR -62: WFC is in the process of preparing an application to incorporate "as- sampled" soils <br />information into the permit, reflecting the soil sampling conducted on the Morgan property under <br />the plan approved with TR -61. <br />SL -12: Mr. Gubka said WFC has contacted Dave Buckner for assistance in responding to the <br />Division's adequacy review comments on this bond release application. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />• The drill rig was set up on Bench 2 overburden on Morgan property. Holes were 38 feet <br />deep, and loaded in two decks due to the proximity of the P. Enstrom house, to the west. <br />• Mr. Gubka said that WFC is currently placing four seismographs, one for each residential <br />structure (F Morgan, P Enstrom, and N Enstrom (2)). <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 Page 2 of 5 <br />