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Geotechnical I Environmental Engineering • Materials Testing <br />January 6, 2017 <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 />fourth 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 />December 30, 2016 to provide the quarterly inspection/observations of the Refuse Pile. <br />At the time of our site visit on December 30, 2016, NWCC completed a cursory site inspection of the <br />existing refilse pile. Based on our observations made during this visit, it appeared that the contractor was <br />presently stockpiling the refuse coal in the northeastern portion of the new Expansion Area. At the time of <br />our site visit the refuse coal had been placed and compacted to an elevation above the second bench along <br />the northeast side of the stockpile. <br />In addition, a representative of NWCC visited the refirse pile on December 30, 2016 to conduct <br />compaction testing in the new Expansion Area of the refuse pile. A total of four compaction tests (#547 to <br />#550) were taken in Expansion Area during this quarter. All of the tests taken during this quarter met the <br />minimum compaction requirement of 90% of the maximum standard Proctor density. Copies of the <br />compaction test results and the daily field reports are attached. It should be noted that the abbreviations <br />given in the Nuclear Density Test Results (Proctor Data) are as follows: Maximum DD = Maximum Dry <br />Density and OMC = Optimum Moisture Content. Both of these values have been determined in accordance <br />with ASTM D698. <br />The internal roadways in the new expansion area of the pile were in good condition. The upper haul road to <br />Areas 2, 3 and 4 of the refuse pile was not accessible at the time of our site visit, due to snow cover. The <br />surface drainage conditions generally appeared to be adequate across the top and sides of the pile; however, <br />our observations were limited due to snow cover. <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />