_INSPECTION - C1981008 (7) - Laserfiche WebLink

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March 28, 2013 C-198 1-008/New Horizon Mine MLT • The Bench One ("OB 1") stockpile on the Morgan property has been substantially reduced in size. Mr. Gubka said there is more than enough OB I to complete backfilling the remaining pit and Pond 011; the balance will be used to fine-grade Morgan property and bring BB Road to grade. • On the WFC parcel, the post-mining topography is beginning to take shape. Mr. Gubka pointed out the spot where the topographic "low"will be located, adjacent to the Tuttle Draw drainage (Photo 2). FISH and WILDLIFE—Rule 4.18: • Three White-faced ibis, one Great blue heron, multiple pairs of Lesser scaup, and a pair of Canada geese were taking advantage of habitat provided by Pond 007. • The ibis and scaup are believed to be migratory species, and have been observed at this pond in previous years. HYDROLOGIC BALANCE - Rule 4.05 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; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage—Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: • Ponds 007, 008 (Photo 3) and 013 (Photo 4)were each impounding water, but at elevations below those at which discharge will occur. Pond embankments, inslopes and collection ditches were stable and reasonably well vegetated. • Ponds 009 and 015 were dry. • Pond 012 contained only a shallow puddle at the western end. • Water was being pumped from the pit on WFC's property into the remaining pit on the Morgan property. The operator desires to keep water available for dust control purposes, and the CCC Ditch is not scheduled to run until mid-April. GENERAL MINE PLAN COMPLANCE: • Topsoil salvage has been completed from the final cut at the northwestern corner of the permit(Photo 5). Mr. Gubka said that cuts have been 160 feet wide in this area rather than the 115 feet that was used when the overburden was thicker. • The Nucla Generating Station, which is the mine's sole customer, is presently in a three- month shut down that is expected to end in mid-June when the demand for electricity tends to rise. • The mine continues to produce coal (Photo 6), loading it into highway haul trucks for delivery to the Nucla station, where it is being stockpiled in preparation for the plant's June start-up. • Once the coal resource at the New Horizon Mine is exhausted, the mine's shovel will be disassembled and transported 1.5 miles north on 2700 Road to the New Horizon North Mine permit area. Number of Partial Inspection this Fiscal Year: 8 Number of Complete Inspections this Fiscal Year: 3 Page 3 of 9