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orthWest Colorado Consultants, Inc. <br />Geotechnical ! Environmental Engineering • Materials Testing <br />Apri19, 2014 <br />Twentymile Coal Company <br />29515 RCR #27 <br />Oak Creek, CO 80467 <br />Attn: Mr. Jerry Nettleton <br />Job Number: 99 -3983 <br />Subject: Quarterly Observation Report, Refuse Pile, <br />Foidel Creek Mine, Routt County, Colorado. <br />Mr. Nettleton, <br />As requested, NWCC, Inc. (NWCC) has prepared this report outlining our observations made during the <br />first quarter of 2014 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek Mine in <br />Routt County, Colorado. During this quarter, Timothy Travis of NWCC visited the project site on March <br />31, 2014 to provide the Quarterly inspection/observations of the Refuse Pile. <br />At the time of our site visit, we completed a cursory site inspection of the existing refuse pile. Based on our <br />observations made during this visit, it appeared that the contractor was presently stockpiling and <br />compacting the refirse coal in the new Expansion Area. At the time of our site visit the refuse coal had been <br />placed and compacted to an elevation near the second bench along the east side of the stockpile. <br />It should also be noted that at the time of our visit the majority of the refuse pile was covered with 0 to 6 <br />inches of snow. Based on our Iimited observations, we did not observe any signs of instability, structural <br />weakness or hazardous conditions at the pile. The internal roadways in the new expansion area of the pile <br />were in good condition; however, the upper haul road to Areas 2, 3 and 4 of the refuse pile was partially <br />covered with snow and these areas were not accessible. Based on limited observations, the surface drainage <br />conditions generally appeared to be adequate across the top and sides of the pile. <br />We were previously informed by Brian Watterson of Peabody that all of the original monitor wells installed <br />in the Refuse Pile were destroyed in July 2012. Two new monitor wells were constructed in Area 1 of the <br />Refirse Pile in December 2013. NWCC was advised by Mr. Watterson that the water level in the western <br />monitor well (RW #1) was measured at 6 1. 18 feet below the existing ground surface (bgs) on January 9, at <br />61.31 feet bgs on February 19 and at 61.24 feet on March 4 of 2014. The water level in the eastern monitor <br />well (RW #2) was measured at 58.27 feet bgs on January 9, at 58.20 feet bgs on February 19 and at 58.16 <br />feet on March 4 of 2014. <br />(970) 879 -7888 • Fax (970) 879 -7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />