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July 16,2013 C-1981-008/New Horizon Mine JLE <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 Y -Roads <br /> N -Availability of Records N -Reclamation Success <br /> R -Backfill& Grading R -Revegetation <br /> NA -Excess Spoil and Dev. Waste NA - Subsidence <br /> N -Explosives Y - Slides and Other Damage <br /> Y -Fish&Wildlife Y - Support Facilities On-site <br /> R -Hydrologic Balance N - 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 /> NA -Processing Waste Y -Topsoil <br /> COMMENTS <br /> This was a partial inspection of the New Horizon Mine; operated by Western Fuels-Colorado,LLC;permit no. C- <br /> 1981-008. I,Jared Ebert of the Colorado Division of Reclamation,Mining and Safety conducted the inspection. <br /> Mr. Tom Fry with Western Fuels accompanied me during the inspection. The weather was warm and partly <br /> cloudy. <br /> BACKFILL and GRADING—Rule 4.14; Contemporaneous Reclamation 4.14.1;Approximate Original Contour <br /> 4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2,4.27; Handling of Acid and Toxic Materials <br /> 4.14.3; Stabilization of Rills and Gullies 4.14.6: <br /> The pit within the Morgan property has been backfilled and the surface of the spoil has been roughened in most <br /> areas. <br /> HYDROLOGIC BALANCE -Rule 4.05;Drainage Control 4.05.1,4.05.2,4.05.3; Siltation Structures 4.05.5, <br /> 4.05.6; Discharge Structures 4.05.7,4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br /> Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage —Acid and Toxic Materials 4.05.8; <br /> Impoundments 4.05.6,4.05.9; Stream Buffer Zones 4.05.18: <br /> Pond 007 was holding water and discharging. Several carbon dioxide tanks were observed near the discharge <br /> point. Western Fuels was pumping carbon dioxide into the water just above the flume to treat the pH of the <br /> discharge water. <br /> Pond 008 was holding water and discharging. The embankment appeared stable and the primary spillway was <br /> clear and functional. <br /> Pond 009 was dry and was not discharging. The primary spillway was clear and functional and the embankment <br /> was stable. <br /> Pond 011 was holding a small amount of water at the northwest corner of the pond but the pond was not <br /> Number of Partial Inspection this Fiscal Year: 1 <br /> Number of Complete Inspections this Fiscal Year: 0 <br /> Page 2 of 6 <br />