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July 16,2013 C-2010-089/New Horizon North 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 /> N -Backfill& Grading N -Revegetation <br /> N -Excess Spoil and Dev.Waste NA - Subsidence <br /> N -Explosives Y - Slides and Other Damage <br /> N -Fish&Wildlife R - Support Facilities On-site <br /> R -Hydrologic Balance R - Signs and Markers <br /> R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br /> N - Other N - Special Categories Of Mining <br /> N -Processing Waste R -Topsoil <br /> COMMENTS <br /> This was a partial inspection of the New Horizon North Mine; C-2010-089 operated by Western Fuels. I,Jared <br /> Ebert of the Colorado Division of Reclamation,Mining and Safety conducted the inspection. Mr. Tom Fry with <br /> Western Fuels accompanied me on the inspection. The weather was warm and partly cloudy. <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 001 was dry and not discharging. The embankment was stable and the primary spillway was clear and <br /> functional. <br /> The western and eastern side ditches were observed. The ditches appear stable and functional. <br /> GENERAL MINE PLAN COMPLIANCE: <br /> The Operator was excavating overburden/spoil material north of the topsoil stockpile area. Overburden has been <br /> placed in the overburden stockpile area. <br /> SUPPORT FACILITIES - Rule 4.04: <br /> An office trailer and parking area has been constructed in the facilities area. <br /> SIGNS AND MARKERS—Rule 4.02: <br /> Identification signs were observed around the site near road intersections and at the entrance to the facilities area. <br /> TOPSOIL—Rule 4.06; Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; <br /> Number of Partial Inspection this Fiscal Year: 1 <br /> Number of Complete Inspections this Fiscal Year: 0 <br /> Page 2 of 4 <br />