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November 14, 2012 C-1981-008/New Horizon Mine JLE <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> Y -Air Resource Protection Y -Roads <br /> N -Availability of Records N -Reclamation Success <br /> R -Backfill &Grading R -Revegetation <br /> R -Excess Spoil and Dev.Waste NA - Subsidence <br /> N -Explosives Y - Slides and Other Damage <br /> R -Fish &Wildlife Y - Support Facilities On-site <br /> R -Hydrologic Balance Y - Signs and Markers <br /> R -Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br /> N -Other N - Special Categories Of Mining <br /> NA -Processing Waste R -Topsoil <br /> COMMENTS <br /> This was a partial inspection of the New Horizon No. 2 mine; DRMS File No. C-1981-008. This site is located in <br /> the town of Nucla, Colorado. I, Jared Ebert of the Colorado Division of Reclamation, Mining and Safety <br /> conducted the inspection. Mr. Ross Gubka with Western Fuels accompanied me on the inspection. The weather <br /> was clear and cool in the morning and warm in the afternoon. <br /> BACKFILL and GRADING—Rule 4.14; Contemporaneous Reclamation 4.14.1;Approximate Original Contour <br /> 4.14.2;Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27;Handling of Acid and Toxic Materials <br /> 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br /> The pit on the Morgan property is being backfilled from the south end toward the north. Bench 1 material is being <br /> backfilled on top of the Bench 2 material a 5 to 6 foot lift of Bench 1 material was observed. Water is being <br /> pumped from the pit,however a pool of water was still observed at the bottom of the pit. <br /> EXCESS SPOIL and DEVELOPMENT WASTE—Rule 4.09; Placement; Drainage Control; Surface Stabilization: <br /> The spoil pile adjacent to the office area was observed. The top of the pile is being used for equipment storage. <br /> FISH and WILDLIFE—Rule 4.18: <br /> Ducks were observed in Ponds 007 and 013 <br /> Geese were observed in the irrigated pasture reclaimed area north of 5th avenue. <br /> HYDROLOGIC BALANCE -Rule 4.05; Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 /> Number of Partial Inspection this Fiscal Year: 4 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 2 of 7 <br />