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orthWest Colorado Consultants, Inc. <br />Geotechnlcal ! Environmental Engineering - Materials Testing <br />October 9, 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 />third quarter of 2014 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek Mine <br />in Routt County, Colorado. During this quarter, Timothy Travis of NWCC visited the project site oil <br />September 30, 2013 to provide the quarterly inspcction/observations of the Refuse Pile. <br />At the time of our site visit on September 30, 2014, NWCC completed a cursory site inspection of the <br />existing refuse pile. Based on our observations made during this visit, it appeared that the contractor was <br />presently stockpiling and compacting the refuse coal in the new Expansion Area. At the time of our site <br />visit the refuse coal had been placed and compacted to an elevation near the second bench along the east <br />side of the stockpile. <br />In addition, a representative of NWCC visited the refuse pile on September 7, 2014 to take compaction tests <br />in the new Expansion Area of the refuse pile. A total of four compaction tests ( 9517 to #520) were taken in <br />Expansion Area during this quarter. All of the tests taken during this quarter met the minimum compaction <br />requirement of 90% of the maximum standard Proctor density. Copies of the compaction test results and <br />the daily field reports are attached. It should be noted that the abbreviations given in the Nuclear Density <br />Test Results (Proctor Data) are as follows: Maximum DD — Maximum Dry Density and OMC � Optimum <br />Moisture Content. Both of these values have been determined in accordance with ASTM D698. <br />The internal roadways in the new expansion area of tine pile were in good condition. The upper hall] road to <br />Areas 2, 3 and 4 of the refuse pile was in fair condition. Small erosion channels were observed in the haul <br />road. <br />A drainage port located aloarg the upper haul road on the west side of Areas 2, 3 and 4 experienced <br />excessive channeling during heavy rain events in September 2013, which caused the stockpile materials to <br />wash out onto the haul road. TCC had repaired the drainage port by regrading the eroded areas and placed <br />(970) 879 -7888 • Fax (970) 879 -7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />