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SOW MINING, LLC <br />ENGINEERING INSPECTION <br />EAST YARD, WEST VALLEY FILL AND H WEST <br />COAL MINE WASTE DISPOSAL PILES <br />The approved Oxbow Mining, LLC (OMLLC) Mine permit includes a requirement for quarterly inspections of <br />coal mine waste piles for stability. The inspection is to be performed by a registered engineer or other qualified <br />professional specialist, who is experienced in the construction of earth and rockfill embankments. On September <br />26, 2014 visual inspections were performed of the East Yard, West Valley Fill and II West coal mine waste <br />disposal areas. No compaction tests were conducted during the quarter. <br />EAST YARD - The East Yard disposal area has reached its design capacity, and no new waste material has been <br />placed since June of 2001. The revegetated slope was inspected for signs of erosion or instability. No erosional <br />features were noted on the slope. The covering of the waste pile is considered complete. Nothing was observed <br />during the inspection that would indicate the pile has a potential for structural failure. <br />WEST VALLEY FILL — During the third quarter, no waste material was hauled to the West Valley Fill area. <br />The refuse pile remains surveyed at the approximate 6228' elevation. The active waste storage area will <br />continue to be available as an interim storage area for wet refuse rehandled later to H West and a staging area for <br />miscellaneous projects. Due to the idling of the mine, the area presently serves as a temporary parking lot for <br />out -of- service mine equipment. <br />The revegetated outslope located between the fill slope toe to the approximate 6200' elevation was inspected for <br />signs of erosion and instability. No erosional features were noted on the slope. The third bench (approximate <br />6200' elevation) setback remains established for the final lift of waste material and the ramp constructed on the <br />waste pile to provide access to the II West Coal Refuse Facility light use road and haul road. These two roads <br />continued to be utilized during the quarter. No springs or seeps were noted. Surface drainage control features <br />are performing according to the plan. Nothing was observed during the inspection that would indicate the West <br />Valley Fill has a potential for structural failure. <br />H WEST — The H West disposal area received 330 cy of additional coal mine waste material during the third <br />quarter of 2014. H West waste remains at the approximate 6141' elevation. The 2013 regraded outslope area <br />seeded on November 7, 2013 remains stable with initial I' year growth of seeded species. A few thistles were <br />sprayed with herbicides. Older seeded areas continue to perform according to the plan. No springs or seeps were <br />noted. Surface drainage control features are performing according to the plan. Nothing was observed during the <br />inspection that would indicate the II West Valley Fill has a potential for structural failure. <br />(/ /I spected by J <br />y� <br />Benjamin L. r�tr� Date <br />Colorado License �roftisst6nal Engineer No. 34286 <br />3737 Hwy 133 • P.O. Box 535 • Somerset, Colorado 81 434 USA <br />TEL (970) 929 -51 22 FAX (970) 929 -51 77 <br />