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January 11, 2012 C- 1981- 008/New Horizon Mine MLT <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />On the Burbridge parcel, Collection Ditch C17 has been recently reclaimed (Photo 1). As <br />illustrated on Permit Map No. 2.05.3(3) -1, this ditch collected surface runoff from Basin 5, <br />which covers 31.8 acres, and carried the flow eastward to sedimentation Pond 007. Post - <br />mining land use for Basin 5 is Irrigated Pasture. Phase II bond release was approved under <br />SL -11 on July 28, 2009. <br />• Water levels in Ponds 007 and 008 were relatively low, and both ponds were frozen over. <br />GENERAL MINE PLAN COMPLANCE: <br />On the Morgan property, a box cut plus two adjacent blasts have occurred on the present cut. <br />Mr. Gubka said that there are two additional coal cuts remaining on the Morgan property, <br />and then mining will be completed there. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />Mr. Gubka pointed out numerous head of cattle that were grazing on the Staats parcel, south <br />of 5th Road. Staats' field straddles Calamity Draw. The portion of his field on the north side <br />of the Draw lies within the mine permit area, while that to the south is outside the permit <br />area. The cattle are free to move from one side of Calamity Draw to the other. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />• No livestock were being grazed or fed at the Irrigated Pasture Reference Area. <br />A number of cattle were grazing the Dryland Pasture within the current NH1 boundary <br />(Photo 2). (Once the New Horizon North permit is issued, this land will be transferred into <br />that permit, and re- disturbed.) <br />DOCUMENTS RECEIVED: None <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 Page 3 of 5 <br />