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December 11,2012 C-1981-008/New Horizon Mine MLT <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted <br /> V=Violation Issued NA=Not Applicable <br /> Y -Air Resource Protection Y - Roads <br /> R -Availability of Records Y - Reclamation Success <br /> R -Backfill& Grading R - Revegetation <br /> NA - Excess Spoil and Dev. Waste NA - Subsidence <br /> R - Explosives NA - Slides and Other Damage <br /> R - Fish & Wildlife N - Support Facilities On-site <br /> Y -Hydrologic Balance N - Signs and Markers <br /> R - Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br /> N - Other R - Special Categories Of Mining <br /> NA - Processing Waste R - Topsoil <br /> COMMENTS <br /> A partial inspection of the New Horizon Mine was conducted by me,Marcia Talvitie, of the <br /> Division on Tuesday, December 11, 2012. Ross Gubka was available to represent the operator, <br /> Western Fuels-Colorado, LLC, throughout the inpsection. Skies were clear, with chilly <br /> temperatures. The western slope of Colorado has continued to experience unusually dry <br /> weather. Some snow was visible on the La Sal Mountains to the west, but lower elevations were <br /> compltely bare. <br /> The Nucla Generating Station was in its second week of being idled by Tri-State for economic <br /> reasons. The shut-down was expected to last at least through December 21 st. As a result of the <br /> plant's being idled, the mine was not delivering coal to the plant at the time of the inspection. <br /> PERMITTING UPDATE: <br /> RN-06 The application was deemed complete for purposes of filing on November 23, 2012. The <br /> Public Notice is being published in the San Miguel Basin Forum four times — on Nov. 26 <br /> and Dec. 6, 13 and 20. The Division's adequacy review will be due on January 22, 2013. <br /> SL-13 The bond release inspection was conducted on August 15, and the Division's preliminary <br /> adequacy review was issued on October 17, 2012. Western Fuels' adequacy response <br /> was received on October 24, 2012. The Division will be issuing a Findings and revised <br /> Reclamation Cost Estimate this winter. <br /> SL-14 An application was received on December 6, 2012. Public Notice is currently being <br /> published in the San Miguel Basin Forum on December 13, 20 & 27 and January 3, 2012. <br /> A determination of the application's completeness will be made following the final <br /> publication. <br /> Number of Partial Inspection this Fiscal Year: 5 <br /> Number of Complete Inspections this Fiscal Year: 2 Page 2 of 7 <br />