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January 23, 2012 C-1981-033/13ear Mine BFB Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable R -Air Resource Protection R -Roads N -Availability of Records N -Reclamation Success N -Backfill &Grading N -Revegetation N -Excess Spoil and Dev.Waste N - Subsidence N -Explosives R - Slides and Other Damage R -Fish &Wildlife R - Support Facilities On-site R -Hydrologic Balance R - Signs and Markers N -Gen. Compliance With Mine Plan N - Support Facilities Not On-site N -Other N - Special Categories Of Mining N -Processing Waste N -Topsoil COMMENTS INTROCUCTION—This was a partial inspection of the Bear 3 Mine conducted by Brock Bowles of the Colorado Division of Reclamation, Mining and Safety on January 23, 2012. There was not a company representative present for the inspection. Weather conditions were overcast with four inches of snow on the ground and the temperature was above freezing. AIR RESOURCE PROTECTION—Rule 4.17: There was no problem with fugitive dust coming off the site or disturbed areas. All the vegetation and bare soil was covered with 4 inches of snow. FISH and WILDLIFE—Rule 4.18: Two bald eagles were flying over head and eventually perched in a cottonwood tree along the river at the mine site. HYDROLOGIC BALANCE -Rule 4.05; Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage —Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: There was no standing water in the sediment pond. The gate on the primary discharge tube was closed. The outlet side of the pipe was not inspected due to snow cover and slippery rocks. The riprapped emergency spillway appeared to be unblocked. The pond embankment appeared to be stable. The hillside spring was discharging into the treatment pond through the collection ditch and culvert (photo 1). The treatment pond was mostly snow covered with a small unfrozen area where the hillside spring enters the pond (photo 2). The pond was discharging at the approved NPDES point. The leakage noted in the last inspection report was not noted,most likely due to the snow cover. The pond embankment appeared to be stable. Number of Partial Inspection this Fiscal Year: 5 Number of Complete Inspections this Fiscal Year: 2 Page 2 of 5