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August 16, 2012 C- 1981 - 018 /Deserado Mine ZTT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />R - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance R - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste R - Topsoil <br />COMMENTS <br />FISH and WILDLIFE — Rule 4.18: <br />Three ospreys were found perched along the power line poles above the Raw Water Lagoon. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13, Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The B Seam Mine Dewatering Pond system was operational during the time of the inspection. The water being <br />pumped was mixed with coagulant within the pumping system to help the settling process. Water had been <br />discharged up to Pond 44 and no discharge into the ditches had occurred. The Last Chance Pond held minimal <br />water due to previous pumping. No water has been discharged from the Last Chance Pond as of the date of <br />inspection. The Artificial Wetlands Area has had new channels constructed to divert flow around to the main <br />wetlands area to avoid saturating the soil prior to new construction related with the B Seam Dewatering Pond. <br />Ponds SS -1, SS -2, RR -1, RP -1, RP -4 and RP -5 were all dry. Embankments were stable and well vegetated. <br />Pond RP -2/3 held minimal water in southeast cell. Other two cells were dry. Embankments were well vegetated <br />and stable. Pond RP -2/3 was not discharging at the time on inspection. <br />Ponds DP -1, PP -1 and PP -2 held water. None of the ponds were discharging at the time of inspection and <br />embankments were stable. Pond DP -1 was currently having water pumped from the pond up to the thickener tank. <br />Facility drainage channels to Pond DP -1 were sufficiently armored with rip rap. Additional rip rap was added as a <br />rock check dam to help control additional erosion into the pond. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 4 <br />