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Quarterly Inspection Report -Refuse Pile January 6, 2017 <br />Twentymile Coal Company-Foidel Creek Mine <br />Job No.: 99-3983 Page 2 of 3 <br />A seepage area at the toe of the northeast end of the refuse pile expansion area, approximately 30 feet <br />northwest of the outlet of the underdrain, developed in the fall of 2014. At the time of our observations, the <br />seepage was still surfacing at the toe of the slope and flowing into the drainage from the undrain outlet then <br />into the existing pond east of the Refuse Pile Expansion Area. The discharge remains clear, with no <br />evidence of sediment. No signs of washout, slumps or slope instability were observed at this time. The <br />seepage area will be monitored during future inspections and noted in our inspection reports. Photographs <br />of the seepage area taken at the time of our inspection on December 30, 2016 are attached. <br />Based on our limited observations, the surface drainage conditions generally appeared to be adequate across <br />the top and sides of the pile. Based on our observations, we did not observe any signs of instability, <br />structural weakness or hazardous conditions at the refuse pile. <br />We were advised that the wash plants had produced approximately 186,190 tons of waste coal during the <br />month of October 2016: approximately 155,352 tons during November 2016: and approximately 76,029 <br />tons during December 2016. It is our understanding that the fines being produced at the wash plant, which <br />consists of approximately 10 to 20 percent of the total materials being produced, are being pumped <br />underground into the mine. <br />We were previously informed by Brian Watterson of Peabody that all of the original monitor wells installed <br />in the Refitse Pile were destroyed in July 2012. Two new monitor wells were constructed in Area 1 of the <br />Refuse Pile in December 2013. NWCC was provided monthly monitor well readings for this quarter by <br />Miller Water Monitor Service, Inc. The water level in the western monitor well (RW#I) was measured at <br />57.98 feet below the existing ground surface (bgs) on October 22"', at 58.07 feet bgs on November 5'h and <br />at 57.98 feet bgs on December 6" of 2016. The water level in the eastern monitor well (RW#2) was <br />measured at 56.53 feet bgs on October 22"d, at 56.54 feet bgs on November 5'11 and at 56.52 feet bgs on <br />December 6'h of 2016. An additional monitor well (RW#3) was constructed at the southeast end of the I" <br />bench in new Expansion Area in June of 2014. No water was observed in RW#3 on the dates noted above. <br />Based on our limited observations, it appeal that the pile is currently being constructed and maintained in <br />general accordance with the project specifications and plans submitted under 2.05.3(8) and that the <br />potential hazard to human life and property at the site in its present condition is minimal. This report fidfills <br />the quarterly inspection requirements as specified by Rules 4.09. 1(1 l)(a), 4.09.1(11)(b), 4.10.2(2)(a) and <br />4.10.2(2)(b). <br />NWCC, Inc. <br />