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December 13,2012 C-1981-018/Deserado Mine ZTT <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> N -Air Resource Protection R -Roads <br /> R -Availability of Records Y -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 /> N -Fish&Wildlife N - Support Facilities On-site <br /> R -Hydrologic Balance R - Signs and Markers <br /> Y -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 /> This was a complete inspection of Deserado Mine conducted by Zach Trujillo on December 13, 2012. Scott <br /> Wanstedt of Blue Mountain Energy,Inc. accompanied myself on the inspection. <br /> AVAILABILITY OF RECORDS—Rule 5.02.4(1): <br /> All compliance records are located at Deserado Mine. Please see the Division's Availability of Records form at the <br /> end of this inspection report for more details. <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 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 /> Sedimentation Pond DP-1 held water at the time of the inspection and was not discharging. The emergency <br /> spillway was clear of debris and was well stabilized with rip rap. The primary spillway discharge point is located <br /> just beside the Scullion Gulch discharge point and is submerged beneath the ponding water in the area. Rip rap <br /> lined the ditches leading from the facility area to the pond and was clear and stable. <br /> Ponds PP-I,PP-2 and the Raw Water Lagoon held water. Embankments were stable and no discharge was <br /> observed. <br /> Sedimentation Pond RP 2/3 held water in the two upper cells. The lower larger cell was dry and no discharge <br /> occurred.The embankments were stable and well vegetated. The emergency spill way was also stable and well <br /> lined with riprap. <br /> The B-Seam Mine Dewatering pump was not running during the time of the inspection. Water currently has been <br /> filled up to the 6th cell of the B-seam dewatering pond system. Water has yet to discharge from the B-seam Mine <br /> Dewatering Pond system. <br /> Number of Partial Inspection this Fiscal Year: 4 <br /> Number of Complete Inspections this Fiscal Year: 2 <br /> Page 2 of 5 <br />