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<br />• October 2, 1997 <br />Lorencito Coal Company, LLC <br />c/o Greystone <br />5990 Greenwood Plaza Boulevard, Suite 250 <br />Englewood, Colorado 80111 <br />Attention: Mr. Jerry Koblitz <br />Subject: New Elk RDA <br />Lorencito Coal Mine <br />Las Animas County, Colorado <br />Job No. 26,600 <br />Gentlemen: <br />At your request we have reviewed our previous work at the New Elk RDA to <br />summarize the information available and facilitate mid-term permit review by the <br />Colorado Division of Minerals and Geology (CDMG). The items reviewed included: <br />• 1. Supplemental Stability Investigation, Refuse Disposal Area, by <br />CTL(Thompson, Inc., Weston, Colorado, Job No. 22,478, dated May 10, <br />1995. This investigation included a review of previous design <br />documents, and testing performed at the RDA to develop opinions <br />regarding the stability of the RDA and also to provide recommenda- <br />tions for RDA configuration and operating procedures. The report <br />reviewed considerable density testing information performed during <br />pile construction and also density information based upon borings into <br />the waste pile. The conclusion was that generally satisfactory <br />compaction was of the waste material was present. The drilling for this <br />investigation was performed during November 1994. The elevation of <br />the borings on the working surface of the RDA at the time of drilling <br />ranged from 7637 to 7647. <br />In summary, the investigation indicated the existing RDA configuration <br />is judged to be stable. A proposed RDA configuration with 2.2:1 (H:V) <br />slopes between benches, with horizontal benches at 50 foot vertical <br />intervals was also recommended and considered to be a stable <br />configuration. We understand this report was intended to be the basis <br />for a revised operating plan using the new proposed configuration and <br />construction recommendations. <br />2. Subsequent to the above investigation, coal waste processing and <br />• placement on the pile continued until March of 1996. At this time the <br />CTL/THOMPSON, INC. <br />CONSULTING ENGINEERS <br />1971 WEST 12TH AVENUE ~ DENVER, COLORADO 80204 ~ (303) 825-0777 <br />