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Quarterly Inspection Report -Refuse Pile January 9, 2018 <br />Twentyruile Coal Connpany-Poidel Creek Mine <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 29, 2017 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 176,515 tons of waste coal during the <br />month of October 2017: approximately 173,175 tons during November 2017: and approximately 107,923 <br />tons during December 2017. 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 Refuse Pile were destroyed in July 2012. Two new monitor wells were constructed in Area I 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 />57.84 feet below the existing ground surface (bgs) on October 15'", at 57.77 feet bgs on November 18" and <br />at 57.82 feet bgs on December 10`" of 2017. The water level in the eastern monitor well (RW#2) was <br />measured at 56.50 feet bgs on October 15", at 56.44 feet bgs on November 181" and at 56.48 feet bgs on <br />December 10`" of 2017. 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. The water level in the expansion area monitor well (RW#3) <br />was dry when checked on October 15", November 18" and December 10" of 2017. <br />Based on our limited observations, it appears 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 fulfills <br />the quarterly inspection requirements as specified by Rules 4.09.l(11)(a), 4.09.1(11)(b), 4.10.2(2)(a) and <br />4.10.2(2)(b). <br />NWCC, Inc. <br />