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HONEYWOOD COAL COMPANY HAMILTON MINE IMPOUNDMENT YEARLY INSPECTION In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly to determine if the impoundment has been maintained as designed, and in accordance with the approved plan and the applicable regulations. This yearly inspection is for the impoundments located at the Hamilton Mine. Prior to this inspection, settling and erosion of material along the spillway had breached the embankment of Pond B. Failed portions of the pond embankment were excavated and then reconstructed in accordance with the approved designs and applicable rules. This repair was certified to be in accordance with the approved plan and applicable regulations by the undersigned. The primary spillw~ in Pond B was enlarged to six inches in diameter. _ -`-`~ `- _ __ " -~ On February 4, 2005, I performed the required yearly inspections. I, J. E. Stover, have a wide variety experience in the design and construction of earth fill embankments. Nothing was observed during the inspection that would indicate the ponds have a potential for failure. There was no appearance of erosion, instability, structural weakness or other hazardous conditions. There are no required monitoring procedures or instrumentation other than quarterly and yearly monitoring. There are no aspects which might affect stability and there is no required maintenance. There was no discharge from either of the ponds. Pond A had water standing at the invert of the primary spillway at approximate elevation 5878. Pond B had water standing at the invert of the primary spillway at approximate elevation 5811. Pond A is located north of Mining Area No 1. The design of Pond A is shown on drawing 117-A, revised 3-26-92. Pond B is located east of Mining Area No. 1. The design of Pond B is shown on drawing 117 B, revised 11-4-92. The impoundments have the following capacities based on the original pond certification dated May 5, 1992 prepared by the undersigned: IMPOUNDMENT CAPACITIES -ACRE FEET Water Sediment Total Pond A Pond B 2.16 8.07 0.21 0.55 2.37 8.62 Note: The sediment capacity of the ponds may be less than shown in the table because of interim sediment accumulation.