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June 25,2013 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 Y -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 /> R - Other N - Special Categories Of Mining <br /> R -Processing Waste Y -Topsoil <br /> COMMENTS <br /> This was a complete inspection of the Deserado Mine by Zach Trujillo of Colorado Division of Reclamation, <br /> Mining and Safety(DRMS)conducted on June 25,2013. Scott Wanstedt of Blue Mountain Engergy, Inc. (BME) <br /> accompainied the inspection. The weather was clear with the ground dry.No recent precipitation event had <br /> occured prior to the inspection. Temperatures for the day were around eighty five degrees fahrenheit. <br /> AVAILABILITY OF RECORDS—Rule 5.02.4(1): <br /> All records are kept on site at the Deserado Mine's office building with Scott Wanstedt. Please see the Division's <br /> Availability of Records checklist at the end of this inspection report for more detailed information. <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 /> Pond DP-1 is the primary pond for the entire facility area. The pond's embankments were stable and vegetated. <br /> Maintenance to the ponds embankment in which a small sinkhole occured remains stable.The primary discharge <br /> is a riser pipe with the inlet was clear of debris. The emergency spill way was well armored with rip rap and a <br /> concrete cutoff wall.The main channel from the intermediate facility bench was stabilized with rip rap.No cutting <br /> or instability was observed.The secondary channel for the same facility bench was also stable and showed no <br /> signs of cutting. The beginning of the secondary ditch is constructed with a rock check dam as additional sediment <br /> control prior to entering Pond DP-I. <br /> Ponds PP-1 and PP-2 collect partial runoff from the facility area. PP-1 is an in situ pond located just below the <br /> refuse bin and truck loadout.No issues were noted. Pond PP-2 is semi-in situ with its main embankment stable and <br /> vegetated.The spillway is a combination primary/emergency riser pipe spillway. It was noted in the previous <br /> inspection that the bottom section of the embankment of Pond PP-2 was partially saturated.A follow up inspection <br /> to the sit efound no signs of saturation to the embankment. Scott Wanstedt said it was most likely a leak in the <br /> Number of Partial Inspection this Fiscal Year: 8 <br /> Number of Complete Inspections this Fiscal Year: 4 <br /> Page 2 of 8 <br />