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February 1, 2012 C-1981-008/Neiv 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 /> • Much of the surface of Pond 007 was frozen, and only a few ducks were utilizing the thawed <br /> portion. Fewer water fowl are using the pond this year; this may be due to the pond's water <br /> level being lower than in previous years. <br /> • Pond 009 was dry, and the floor of Pond 011 was nearly so. <br /> • At Pond 013, numerous ducks were taking advantage of the unfrozen water surface. This <br /> pond receives a more or less continual inflow of water that is pumped from the floor of the <br /> active pit. The pond also discharges on a continual basis to Tuttle Draw. <br /> • A drill rig was stationed on the northeast corner of the Burbridge farmstead,just outside the <br /> mine permit boundary. Mr. Fry said that the landowner is drilling a water well. <br /> GENERAL MINE PLAN COMPLANCE: <br /> • Western Fuels completed blasting the Morgan portion of the present cut on the preceding <br /> day, Jan. 31. During this inspection, the drill rig was active, drilling a pattern of holes into <br /> the "Bench 2" overburden on the WFC parcel. <br /> RECLAMATION SUCCESS -Rule 4.15, Rule 3: <br /> • During the Jan. 11, 2012 inspection, cattle were seen grazing on the Benson-East parcel. <br /> Those cattle were no longer on the property during the current inspection. However, we did <br /> observe what appeared to be piles of cow manure scattered across the adjacent Richards <br /> parcel, which has an approved post mining land use of Dryland Pasture. I asked Mr. Fry <br /> about the manure, and he said that some of Richards' cattle from an adjoining parcel he <br /> (Richards) owns, outside of the permit area, made their way onto the reclaimed area through <br /> a"hole in the fence". He said this seems to "happen" nearly every year. Western Fuels <br /> contacted Mr. Richards, and had him remove his cattle from the permit area. <br /> REVEGETATION—Rule 4.15 <br /> Vegetative Cover; Timing: <br /> • No livestock were grazing the Irrigated Pasture Reference Area. <br /> • Cattle (owned by Weimer)were grazing on the Staats parcel south of 5th Road. These cattle <br /> have the freedom to cross into and out of the permit area by crossing Calamity Draw. <br /> • Cattle owned by Burbridge were grazing on the Burbridge and San Miguel Power parcels. <br /> Temporary fencing prohibited them from moving onto the Benson-South field (which is now <br /> owned by Staats). <br /> • Mr. Fry said that aerial seeding of forage kochia was conducted on the dryland pasture areas <br /> on January 18, 2012. They used plane and pilot based out of Olathe, Colorado, a town <br /> located 40 miles NE of Nucla. <br /> Number of Partial Inspection this Fiscal Year: 7 <br /> Number of Complete Inspections this Fiscal Year: 2 Page 3 of 6 <br />