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Spring 2013 Subsidence and Geologic Field Observations <br />South of Divide and Dry Fork Mining Areas (E -Seam) <br />3.0 OVERVIEW OF SPRING 2013 FIELD STUDIES <br />This subsidence report is the first of two reports to be generated based on 2013 calendar year <br />observations. Biannual reporting of subsidence related observations have occurred since spring <br />2007. In accordance with MCC's Colorado Division of Reclamation, Mining and Safety <br />(CDRMS) permit, subsidence reports are to be submitted by April 30th (for preceding fall <br />monitoring) and September 30th (for preceding spring monitoring). Spring observations are <br />regularly hampered by limited access due to snow or muddy conditions and fall observations are <br />typically scheduled around the various hunting seasons. Conditions were such this year that the <br />spring 2013 field observations were made on June 13th and 14th. <br />Prior field observations and experience in the West Elk Mine area over the last eighteen years' <br />(1996 to 2013 inclusive) indicate that subsidence features (cracks and bulges) are most visible on <br />roads and trails, where the ground is more compact and free of brush. These areas were therefore <br />selected for observation to most efficiently obtain maximum subsidence information. Other more <br />obvious subsidence features like rockfalls and landslides are generally observable from roads and <br />trails or from overview locations which have, and continue to be, established for this purpose. <br />Spring 2013 subsidence observations were performed in the SOD and Dry Fork mining areas. <br />Considering the lack of observed subsidence - related observations in the Apache Rocks and Box <br />Canyon mining areas since the completion of B -seam mining activities in late 2008, these areas <br />were not visited and are not planned to be visited again for this purpose unless conditions <br />substantially change. This change has prompted the naming convention changes for traverses and <br />photographic observations points which have been relatively constant during the past several years. <br />Attempts will be made to maintain these new names for several additional years as the E -seam <br />mining activities in the SOD and Dry Fork mining area continue. As a consequence, previously - <br />provided mapping associated with B -seam longwall mining have been excluded from this report. <br />These maps can be found in reports prior to 2013. <br />'Annual subsidence and geologic hazard reports are kept at Mountain Coal Company, LLC and at the Colorado <br />Division of Reclamation, Mining, and Safety, as well as exhibits to the permit document (Exhibits 60, 60A, 60B, <br />60C, 60D, and 60E). <br />831 - 032.795 Wright Water Engineers, Inc. Page 6 <br />September 2013 <br />