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June 27, 2016 <br />1.0 Introduction <br />In compliance with Rule 4.09.1 (11) of the Regulations of the Colorado Mined Land Reclamation <br />Board for Coal Mining, a quarterly inspection and report on the construction and associated <br />activities of the Horse Gulch Fill (HGF) at Trapper Mine in Craig, Colorado has been completed. <br />The quarterly inspection was conducted on June 24, 2016, by Tonia M. Perkins, a licensed <br />professional engineer in the State of Colorado. Construction activity related to the fill has been <br />consistent with the approved design. Details of this design can be found in Agapito Associates, <br />Inc.'s (AAI) Horse Gulch Fill Stability Analysis, dated May 29, 2009. <br />No appearances of instability, structural weakness, or other hazardous conditions were observed. <br />Both the south west side of the dump and the north east spoil side of the dump were inspected <br />this quarter. The area where cracks were detected on the top south portion of the dump during <br />the first quarter of 2013 inspection was checked. There was no additional cracking found. The <br />two spots above the 7350' elevation on the south side of the dump that showed some differential <br />settling in the second quarter of 2013 was inspected. Both sites showed some slight additional <br />settling (Photographs 1 and 2). Monitoring these areas on a regular basis will continue. The area <br />where a spring was discovered during the third quarter 2011 inspection was inspected. There <br />was some water flow, approximately a quarter of a gallon per minute (Photograph 3). <br />Photograph 1: South Site above the 7350 Bench Elevation (6/24/2016) <br />F <br />