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:, <br />i <br /> <br />THIRD QUARTER 2003 <br />ENGINEERING INSPECTION <br />EAST YARD AND WEST VALLEY FILL <br />COAL MINE WASTE DISPOSAL PILES <br />The approved Oxbow Mining, LLC (OMLLC) Mine permit document includes a requirement for <br />quarterly inspections of coal mine waste piles for stability. The inspection is to be performed by a <br />registered engineer or other qualified professional specialist, who is experienced in the constmction <br />of earth and rockfill embanlanents. <br />On September 29, 2003, a visual inspection was performed of the East Yard and West Valley Fill <br />gob disposal areas. The East Yard gob disposal area has reached its design capacity, and no new <br />gob material has been placed since June of 2001. The East Yard pile outslope was seeded with the <br />approved OMLLC seed mix in the Fall of 2002. The seeded slope was inspected for signs of <br />erosion or instability. No erosional features were noted requiring repairs to seeded areas. Initial first <br />yeaz vegetation establishment is proceeding. Nothing was observed during the inspection that <br />would indicate the pile has a potential for structural failure. Safety berms continue to be required <br />by the Mine Safety and Health Administration on the downhill edge of the access ramp. <br />The West Valley Fill has received gob material during the third quarter of 2003. Compaction tests <br />aze required, as necessary, based upon the amount of material added to the waste area. Compaction <br />tests aze planned as material is added to the waste area. <br />The portion of the outslope located between the second bench (approximate 6150 elevation) and the <br />present approximate 6200 elevation of waste material has been graded and covered with at least <br />four feet of suitable, non-toxic and non-combustible soil substitute materials. The second bench has <br />received final grading with an approximate 2% grade. The outslope has received final grading and <br />surface scarification in preparation for hydro-mulching scheduled for October, 2003. The third <br />bench (approximate 6200 elevation) setback has been initiated in preparation for the final lift of <br />waste material. <br />Nothing was observed during the inspection that would indicate the pile has a potential for failure. <br />~/ <br />3 ZOO 3 <br />Colorado Registered <br />Hwy 1 <br />No. 14726 <br />Somerset, Colorado 81434 USA <br />TEL (970) 929-5122 FAX (970) 929-5177 <br />