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February 22, 2012 C- 1996- 084 /Lorencito Canyon Mine JHB <br />Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />All mined areas have been regraded, topdressed and seeded. Some of the steeper slopes continue to have poor <br />vegetation establishment, and continue to exhibit rilling. Slopes of concern exhibiting active rill formation include <br />the west and northern portions of Parcel W -1 (Naming designation from 2008 Map ARR -1). These areas were <br />last seeded in 2004 and 2007. Roughening of the surface (contour ripping in strategic locations) and repair of rills <br />and gullies are needed on the steeper slopes in this reclamation parcel. NECC should plan stabilization activity <br />this growing season (2012). <br />Rilling is apparent at the southern slope of C -1 parcel. This appears to be an area that received inter - seeding in <br />2008. Roughening of the surface in key locations may break up any runoff flow and minimize rill re- formation. <br />Repair of larger rills in this area is warranted. <br />Parcel C -1 north of the pre - existing ranch/gas well access road has a sizeable gully forming. The gully is <br />approximately 1 1/2 to 2 feet deep and extends for >35 feet. This feature needs repair. NECC needs to evaluate <br />why this feature formed in this location since the grade is relatively flat, draining to the NE, and fairly well <br />vegetated. <br />Rilling is also occurring on the NW slope of parcel N -2 (seeded 2006). Additional roughening of the surface and <br />repair of the larger rills is recommended in this area to stabilize the slope. Vegetation on the N -2 parcel remains <br />thin. Parcel W -5 (seeded 2005) continues to rill to the south of the Pond 5 access road. Roughening portions of <br />this slope and repair of larger rills is also recommended on this portion of the W -5 parcel. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 Placement; Drainage Control; Surface <br />Stabilization: <br />There are 3 permanent fills on the Lorencito site. All three fills have good vegetative cover. There is evidence of <br />heavy use by deer & elk on the fill benches, especially- on fills 7 and 9. Ditch D75 on the east side of Fill 7 is <br />showing some down - cutting. NECC needs to armor this area to retard further down- cutting of this ditch. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />All ponds were inspected. all ponds with the exception of Pond 5 were dry. Pond 5 was holding a shallow pool of <br />partially frozen water. There is a hole in the outlet structure of Pond 5. It appears to be a bullet hole. The ground <br />under the outlet structure has washed away. This hole needs to be repaired to allow proper function of the outlet <br />structure. Although this hole allows effluent from the Pond to bypass the "V" notch weir in order to accurately <br />measure flow, the discharge is still routed to the same drainage outlet. There was no evidence of recent discharge <br />from Pond 5. <br />Ditches throughout the mine site appear to be functioning and not indicating any concerns, with the exception of <br />Ditch D75 mentioned in the Excess Fill portion of this report. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 8 <br />