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November 14, 2012 C-1981-008/New Horizon Mine JLE <br /> Pond 7 was holding water but was not discharging. The embankment was stable and the primary spillway <br /> appeared functional and the trash rack was clear. The emergency spillway is overgrown with rabbit brush and will <br /> need to be cleaned out. <br /> Pond 008 was holding water. The embankment was stable and vegetated. The primary spillway was clear of <br /> debris and was functional. Channel CI I was stable and vegetated with grass. Some minor side cutting was <br /> observed on the slopes of the channel. <br /> Pond 009 was dry and not discharging. The culvert discharging into the pond from channel C2 was partially <br /> covered with tumble weeds. The primary spillway was clear of debris and appeared functional. Channel C8 <br /> leading into the pond was stable and functional. <br /> Pond 011 was dry except for a small amount of water near the primary spillway. The primary spillway was clear <br /> of debris and appeared functional. <br /> Channel C27 was observed near Pond 015. The channel was clear and stable. A dewatering pipe was leaking <br /> above this channel. Water from the pipe was draining down toward the channel. No water was leaving the site. <br /> Mr. Gubka indicated the leak will be fixed. <br /> Pond 015 was holding a small amount of water. The embankments appeared stable. <br /> Pond 013 was holding water and discharging. The discharge water appeared clear. The primary spillway was <br /> clear of debris and functional. The Operator has discontinued pumping water from the draw into Pond 013. <br /> Pond 012 was dry and not discharging. The pond embankment appeared stable. The primary spillway was clear <br /> of debris and functional. <br /> GENERAL MINE PLAN COMPLANCE: <br /> Coal was being loaded on the south end of the active pit. Drilling was taking place on a coal bench. A dozer was <br /> working on the north end of the pit. The shovel was down for maintenance at the time of the inspection and the <br /> trucks were not running. Bench 1 material and topsoil is being stored behind the active pit. <br /> REVEGETATION—Rule 4.15;Vegetative Cover; Timing: <br /> The I.P. reference area was inspected,no problems were observed. According to Mr. Gubka they had two cuttings <br /> on this pasture. A large cottonwood tree on the eastern boundary of the area was recently cut down. Some of the <br /> slash was still in piles near the stump. <br /> The irrigated pasture north of 5th avenue and south of 5th avenue as well as the dryland pasture was observed. <br /> These areas appeared stable and no problems were noted. <br /> An area south of Pond 012 was prepared and seeded this fall according to Mr. Gubka. <br /> Number of Partial Inspection this Fiscal Year: 4 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 3 of 7 <br />