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March 27, 2014 <br />1.0 Introduction <br />In compliance with Rule 4.09.1 (11) of the Regulations of the Colorado Mined Land Reclamation Board <br />for Coal Mining, a quarterly inspection and report on the construction and associated activities of the <br />Horse Gulch Fill (HGF) at Trapper Mine in Craig, Colorado has been completed. The quarterly inspection <br />was conducted on March 26, 2014, by Tonia M. Perkins, a licensed professional engineer in the State of <br />Colorado. <br />Construction activity related to the fill has been consistent with the approved design. Details of this <br />design can be found in Agapito Associates, Inc.'s (AAI) Horse Gulch Fill Stability Analysis, dated May 29, <br />2009. <br />No appearances of instability, structural weakness, or other hazardous conditions were observed. Both <br />the south west side of the dump and the north east spoil side of the dump were inspected this quarter. <br />The area where cracks were detected on the top south portion of the dump during the first quarter of <br />2013 inspection was inspected. There was no additional cracking found. The two spots above the <br />7350' elevation on the south side of the dump that showed some differential settling in the second <br />quarter of 2013 was inspected. Both areas appear to have settled a bit more. There weren't any signs <br />of bulging at the toe or any cracking. These areas will be monitored on a regular basis. The area where <br />a spring was discovered during the third quarter 2011 inspection was inspected. There was <br />approximately a quarter of a gallon per minute of water flow (Photograph 1). <br />Photograph 1: Spring above the 7470 Bench Elevation (312612014) <br />2 <br />