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Geotechnical I Environmental Engineering • Materials Testing <br />October 6, 2016 <br />Twentymile Coal Company <br />29515 RCR 427 <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 2016 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 on <br />September 29, 2016 to provide the quarterly inspection/observations of the Refuse Pile. <br />At the time of our site visit on September 29, 2016, 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 refuse coal in the new Expansion Area. At the time of our site visit <br />the refuse coal had been placed and compacted to an elevation above the second bench along the east side <br />of the stockpile. It appeared that the contractor was preparing to place the cover materials for the second <br />bench. <br />In addition, a representative of NWCC visited the refuse pile on September 27, 2016 to conduct compaction <br />testing in the new Expansion Area of the refuse pile. A total of three compaction tests (#544 to 9546) were <br />taken in Expansion Area during this quarter. All of the tests taken during this quarter met the minimum <br />compaction requirement of 90% of the maximum standard Proctor density. Copies of the compaction test <br />results and the daily field reports are attached. It should be noted that the abbreviations given in the <br />Nuclear Density Test Results (Proctor Data) are as follows: Maximum DD = Maximum Dry Density and <br />OMC = Optimum Moisture Content. Both of these values have been determined in accordance with ASTM <br />D698. <br />The internal roadways in the new expansion area of the pile are in good condition. The upper haul road to <br />Areas 2, 3 and 4 of the refuse pile was accessible at the time of our site visit. The grading and compacting <br />of the stockpiles completed in 2015 appear to have improved the overall drainage in these areas and no <br />areas of concentrated drainage or slope instability were observed in this area during our site visit. <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive r Steamboat Springs, CO 80487 <br />