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XBOW MININGILC <br />FIRST QUARTER 2018 ENGINEERING INSPECTION <br />EAST YARD, WEST VALLEY FILL AND II WEST COAL MINE WASTE DISPOSAL PILES <br />The approved Oxbow Mining, LLC (OMLLC) Mine permit includes a requirement for quarterly inspections of <br />coal mine waste piles for stability. The inspection is to be performed by a registered engineer or other qualified <br />professional specialist, who is experienced in the construction of earth and rock fill embankments. Visual <br />inspections were performed of the, West Valley Fill, II West and East Yard coal mine waste disposal areas on <br />March 27, 2018. No compaction tests were conducted during the quarter. <br />EAST YARD - The East Yard disposal area has reached its design capacity, and no new waste material has been <br />placed since June of 2001. The revegetated slope was inspected for signs of erosion or instability. No erosional <br />features were noted on the slope. The covering of the waste pile is considered complete. Nothing was observed <br />during the inspection that would indicate the pile has a potential for structural failure. Fill material from the <br />reclamation activities on the Elk Creek Mine Middle Bench is being placed at the base of the waste pile per the <br />reclamation plan. <br />WEST VALLEY FILL — No waste material was hauled to the West Valley Fill area dung this quarter. <br />The refuse pile remains surveyed at the approximate 6228' elevation. The active waste storage area will <br />continue to be available as an interim storage area for wet refuse re -handled later to II West and as a staging area <br />for miscellaneous projects and material storage. <br />During the third quarter of 2015, a burning coal odor, dead vegetation and a warm surface indicated a zone of <br />spontaneous combustion under the reclaimed surface located on the west end of the second bench at the <br />approximate 6200' elevation. An MSHA remediation plan was submitted and approved. The work was <br />completed on 10/15/2105 and was reseeded 10/27/2015. No heating was detected this quarter. Vegetation has <br />covered the area well. <br />The revegetated out slope located between the fill slope toe to the approximate 6200' elevation was inspected for <br />signs of erosion and instability. No erosional features were noted on the slope. The third bench (approximate <br />6220' elevation) setback remains established for the final lift of waste material and the ramp constructed on the <br />waste pile to provide access to the II West Coal Refuse Facility light use road and haul road. These two roads <br />continued to be utilized during the quarter. No springs or seeps were noted. Surface drainage control features <br />are performing according to the plan. Nothing was observed during the inspection that would indicate the West <br />Valley Fill has a potential for structural failure. <br />11 WEST —The II West disposal area received no new coal mine waste material during the quarter. II West <br />waste remains at the approximate 6141' elevation. The 2013 regraded out slope area seeded on November 7, <br />2013 remains stable upon finishing the third year growth of seeded species. Older seeded areas continue to <br />perform according to the plan. No new areas were available for seeding since 2013. No springs or seeps were <br />noted. Surface drainage control features are performing according to the plan. Nothing was observed during the <br />inspection that would indicate the II West Valley Fill has a potential for structural failure. <br />Inspected b}( A A. Smith <br />Atli— <br />Mliha_el W. <br />Colorado Lice Mk _ 'c <br />Date <br />Wiia eer No. 24046 <br />� w <br />3737 Hwy 133 Box 535 • Somerset, Colorado 81434 USA <br />TEL (970) 929-5122 FAX (970) 929-5177 <br />