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Geotechnical / Environmental Engineering a Materials Testing <br />April 5, 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 Comity, Colorado. <br />Mr. Nettleton, <br />As requested, NWCC, Inc. (NWCC) has prepared this report outlining our observations made during the <br />first quarter of 2017 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek Mine in <br />Routt County, Colorado. During this quarter, Timothy Travis of NWCC visited the project site on March <br />30, 2017 to provide the quarterly inspectionlobservations of the Refuse Pile. <br />At the time of our site visit on March 30, 2017, NWCC completed a cursory site inspection of the existing <br />refuse pile. Based on our observations made during this visit, it appeared that the contractor was presently <br />stockpiling and compacting refuse coal in the new Expansion Area. At the time of our site visit the refuse <br />coal had been placed and compacted to an elevation above the second bench situated along the east side of <br />the stockpile. It appeared the contractor had placed the cover materials and topsoil for the second bench. <br />In addition, a representative of NWCC visited the refuse pile on March 23, 2017 to conduct compaction <br />testing in the new Expansion Area of the refuse pile. A total of three compaction tests (9551 to #553) 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 />Additional refuse materials had been placed in Areas 2, 3 and 4 and the contractor was in the process of <br />grading and compacting these materials. <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />