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July 18, 2012 C- 2010- 089/New Horizon North Mine <br />MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection N -Roads <br />N - Availability of Records <br />N - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />N - Signs and Markers <br />N - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Horizon North Mine conducted by Marcia Talvitie of <br />the Division on Thursday, July 18, 2012. Skies were clear and the temperature was <br />approximately 90 degrees. Ross Gubka was available to represent the operator, Western Fuels - <br />Colorado (WFC). <br />Permitting Update <br />The Division issued Permit No. C- 2010 -089 for the New Horizon North Mine on June 20, 2012. <br />The official permit document, signed by WFC, was received by the Division on July 20, 2012. <br />CCC Ditch Second Park Lateral <br />Mr. Gubka provided me with a thorough tour of the pipeline system that was installed this spring <br />for the purpose of carrying irrigation water around the perimeter of the permit area. <br />Historically, the Second Park Lateral Ditch entered the NH North permit area from the east, at <br />the southeastern corner of the Meehan property. The ditch then flowed southwest, across the <br />Garvey property, and beneath 2600 Road, irrigating the Meehan and Garvey fields and properties <br />further to the west. <br />The original ditch alignment will be mined - through by operations at NH North, so maintaining <br />the flow by confining the Second Park Lateral to a pipeline was conceived as the best option <br />available. Mr. Gubka said that the entire pipeline is approximately 9,000 feet in length. The <br />system was designed by DelMont Engineering, and Telluride Gravel was awarded the <br />construction contract. The Colorado Cooperative Company (CCC) owns and operates the CCC <br />Ditch network. <br />The piped system originates at the point of diversion for the Second Park Lateral from the North <br />Lateral, approximately '/z mile east of the NE corner of the permit area. A Parshall flume (4.0' <br />throat width) (Photo 1) was installed in the North Lateral ditch immediately upstream of a new <br />division box. At the time of the inspection, the depth was 1.2 feet, which converts to a flow of <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 Page 2 of 8 <br />