2012-04-02_INSPECTION - C1981008

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March 15, 2012 C- 1981- 008/New Horizon Mine MLT • The water level in Ponds 007 and 008 remains below the level at which discharge will occur. • Ponds 011 and 012 held only shallow pools of water at the western end. • Pond 013 continues to receive water pumped from the mine pit, and was discharging at the time of the inspection. A number of cattail stems were floating on the pond surface; a boom suspended near the discharge structure prevented them from clogging the outlet (Photo 7). • Pond 015, which is designed to hold the 100 -year 24 -hour precipitation event, was dry at the time of the inspection. It was apparent, however, based on the pond floor and northern in- slope, that a small amount of water had made it to the pond sometime this winter. There was no evidence that water had entered the pond from the collection ditch to the east; rather, it was likely a result of surface flow from the area north of the pond. GENERAL MINE PLAN COMPLANCE: • Bench 1 overburden has been removed (with the exception of a section at the south end of the pit, still capped by the rocky layer which must be blasted — Photo 5) from Cut 98B on the Morgan property. The mine had begun the process of blasting the Bench 2 overburden. Blasting operations, in general, begin at the southern end of the cut and move northward. REVEGETATION — Rule 4.15 Vegetative Cover; Timing: • At the Irrigated Pasture (IP) reference area, five cow /calf pairs were observed grazing. In the reclaimed IP areas, a number of cattle were seen grazing on the Burbridge property. It will be important to remove these cattle prior to spring germination of grasses. The parcel of land surrounding Pond 007, previously owned by San Miguel Power Association, has been purchased by the Guires. Mr. Fry said that the new owners did not want cattle grazing on their parcel. Western Fuels installed a "hot wire" line to keep cattle from adjoining fields off of the Guire field. During the inspection, I observed a tractor dragging what appeared to be weighted tires across the surface of the Guire property, just north of Pond 007. The Division is not party to specific terms o f the lease between WFC and Guire. However, we remind WFC that the Guire fields need to continue to be managed in accordance with management of the IP Reference Area throughout the liability period SPECIAL CATEGORIES OF MINING — Rules 4.22 through 4.27: Prime Farmland - Rule 4.25 • The Lift A topsoil on the Morgan property continues to thin westward, as exhibited by the edge of the most recent topsoil salvage operation (Photo 8). • Lift A, Lift B and Mixed stockpiles on the Morgan property were protected from potential loss of the resource by ditches and identification signs. Number of Partial Inspection this Fiscal Year: 8 Number of Complete Inspections this Fiscal Year: 3 Page 6 of 12