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0 February 4, 1998 Basin Resources 14300 Highway 12 Weston, Colorado 81091 Attention: Mr. Ron Thompson Subject: Inspection Report Golden Eagle RDA Permit No. C-81-013 MSHA ID No. 1211-CO-09-0280-01 Golden Eagle Mine Las Animas County, Colorado CTL/T Job No. 27,136 Gentlemen: Our Mr. Gray observed conditions at the Golden Eagle RDA on January 23, 1998. This facility is also known as the "Coal Processing Waste Pile." The refuse pile has been completed, covered and seeded and is proposed for closure. Following is a summary of our observations, with results of our previous testing and analysis included in Appendix A. CTL/Thompson, Inc. performed a Stability Evaluation for this RDA (Job No. 23,793, report dated March 14, 1996) which indicated satisfactory factors of safety for slopes up to 2:1 (H:V). We performed compaction testing on March 17, 1995; June 27, 1995; and March 22, 1996 which indicated compaction exceeding 90 percent of ASTM D 698. The March 22, 1996 testing was performed after final refuse placement. Mr. Ron Thompson with Basin Resources indicated the pile slopes and elevation have been completed to permit requirements, and 4 feet of cover (including 1 foot of topsoil) was placed over the pile. The depth of cover was reportedly checked with backhoe pits. Our observations of the completed pile indicated surface drainage features were in good condition. The RDA does not impound water. No signs of cracking, sloughing or instability were observed. We understand the surface was seeded in 1996. Considering one growing season has elapsed since seeding, vegetation appears to be progressing sufficiently to control erosion. No signs of excessive erosion were observed on the pile surface. Attached as Figs. 1 through 3 are photographs documenting conditions at the time of our observations. CTL/THOMPSON, INC. CONSULTING ENGINEERS 1971 WEST 12TH AVENUE • DENVER, COLORADO 80204 • (303) 825-0777