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As suggested, the water levels in the monitor wells installed on October 23, 1997 and December 9, 1999 <br />were measured during this quarter on a monthly basis. A table and graphs showing [he monthly water <br />levels aze attached. <br />We were advised that the mine had produced approximately 35,846 tons of waste coal during [he month of <br />July 2006: 38,149 tons during August 2006: and approximately 44,536 tons during September 2006. It is <br />our understanding that the fines being produced at the wash plant, which consists of 10 to 20 percent of the <br />total materials being produced, aze being pumped underground into the mine. <br />Rased nn nur limited observations, it appears that the pile is currently being constructed and maintained in <br />general accordance with the project specifications and plans submitted under 2.OS.3(8) and that the <br />potential hazazd to human life and property at the site in its present condition is minimal. This report <br />fulfills the quarterly inspection requirements as specified by Rules 4.09.1(11)(a), 4.09.1(I1)(b), 4.10.2(2)(a) <br />and 4.10.2(2)(b). If you have any questions regarding this report or our observations, please contact this <br />& Geology <br />Job Number: 99-3983 NWCC, Inc. Page 2 <br />