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HONEYWOOD COAL COMPANY <br />HAMILTON MINE <br />IMPOUNDMENT YEARLY INSPECTION <br />In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly <br />to determine if the impoundment has been maintained as designed, and in accordance <br />with the approved plan and the applicable regulations. This yearly inspection is for the <br />impoundments located at the Hamilton Mine. <br />On March 25, 2006, I performed the required yearly inspections. I, J. E. Stover, have a <br />wide variety experience in the design and construction of earth fill embankments. <br />Nothing was observed during the inspection that would indicate the ponds have a <br />potential for failure. There was no appearance of erosion, instability, structural <br />weakness or other hazardous conditions. -There are rio required monitoring"procedures <br />or instrumentation other than quarterly and yearly monitoring. There are no aspects <br />which might affect stability and there is no required maintenance. There was no <br />discharge from either of the ponds. <br />Pond A and Pond B were dry. Pond A is located north of Mining Area No 1. The <br />design of Pond A is shown on drawing 117-A, revised 3-26-92. Pond B is located east <br />of Mining Area No. 1. The design of Pond B is shown on drawing 117 B, revised 11-4- <br />92. <br />The impoundments have the following capacities based on the original pond <br />certification dated May 5, 1992 prepared by the undersigned: <br />Note: <br />IMPOUNDMENT CAPACITIES -ACRE FEET <br /> Water Sediment Total <br />Pond A <br />Pond B 2.16 <br />8.07 0.21 <br />0.55 2.37 <br />8.62 <br />The sediment capacity of the ponds may be less than shown in the table <br />because of interim sediment accumulation. <br />To the best of my knowledge and bel <br />designed and in accordance with the <br />James E! Stove <br />Colorado Professi <br />Registration No. 1 <br />iiaS. ~°a <br />:~® <br />have been maintained as <br />~licable regulations. <br />Date <br />