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August 14, 2012 C- 1981- 008/New Horizon Mine MLT <br />to 4 %) to the west and southwest. The surface is bounded by steeper slopes on the north, east <br />and south. These slopes were spot- checked in the field, using an inclinometer, and are <br />labeled in black text on Photo 1. The slopes generally range between 4H: IV and 5H: IV to <br />the northeast and east. To the northwest, the upper slope is 8H:1 V, flattening to 20H:1 V as it <br />approaches Pond 012. <br />• On the Morgan property, the Bench 2 backfill material is clearly differentiated by both size <br />and color (Photo 2) from the Bench 1 surface spoil that will be placed upon it. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The mine received 0.38 inches of rain during the previous night. Ground conditions were <br />slightly damp, but not muddy. <br />Sediment Ponds 009 and 012 receive run -off from the northern portions of the disturbed area, <br />west of 2700 Road. As we walked the area during the bond release portion of the inspection, <br />we noted that a number of tumbleweeds have become lodged in the western stretch of ditch <br />C8, and should be removed so that the capacity of the ditch is not compromised. We also <br />observed that some erosion has occurred at the southeast corner of Pond 012 (Photo 3), <br />where C8 runs down a rip- rapped section of the pond in- slope. Please repair the riprap that <br />has been undercut by the flow. <br />A cutoff ditch has been dug around the perimeter of the upper surface of the Phase I areas, to <br />prevent flow from being channelized onto the steeper slopes below. The ditch (blue- dotted) <br />appears on Photo 1. <br />GENERAL MINE PLAN COMPLANCE: <br />• Active mine operations are presently occurring on the WFC parcel. The parting between the <br />upper and lower Dakota seams was shot on the day of the inspection, but was not witnessed <br />by DRMS personnel. Following the blast, we observed the shovel at work in the pit (Photo <br />4), loading coal into the haul trucks for transport out of the pit. <br />• No changes to the remaining pit on the Morgan property appear to have been made since the <br />previous inspection. Water continues to collect in the pit, and a pump was set up to send <br />water from the pit to the elevated water storage tank for use in dust control. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3) / 4.03.2(3); Drainage 4.03.1(4) / 4.03.2(4); Surfacing and Maintenance <br />4.03.1(5) and (6) / 4.03.2(5) and (6); Reclamation 4.03.1(7) / 4.03.2(7): <br />Beginning in 2000, the mine's operations impacted the segment of BB Road located east of <br />2700 Road, requiring vehicles to be re- routed around the perimeter of the permit area by a <br />paved detour road. In 2003, the mine began crossing through the portion of 2700 Road <br />within the permit area. Following backfilling and grading, and gravel surfacing, the <br />reconstructed roads were opened to traffic in 2008. The roads were paved with asphalt in the <br />Fall of 2010 (Photos 5 and 6). The County's right -of -way width for both 2700 Road and BB <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 Page 3 of 9 <br />