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Permanent out slopes remain at approximately 90% complete on the toe of sub-area 2-3 and 4. <br />The infill between these sub-areas is complete. The slopes appeared stable with some localized <br />erosion noted. <br />Eleven compaction tests were performed during the quarter. All areas tested exceeded the <br />required Proctor level of 90%. <br />Refuse Area SA has progressed to the point where the drainage characteristics are starting to <br />evolve. The in-pit ditch on the west side is established with appropriate channel protection to <br />carry the projected runoff. <br />To date, a total of 5,401,156 tons of wet refuse have been placed in the 2/3/4 combined sub-area <br />and a total of 2,350,337 tons of wet refuse have been placed in sub-area Sa. <br />The topsoil and subsoil piles for sub-areas 1, 2/3/4 and Sa have been seeded ahd are stable. <br />Vegetative growth appears adequate to control erosion on the piles. <br />Quarterly monitoring of RP-4 refuse pond embankment has continued, and to date appears to be <br />stable. <br />To the best of my knowledge, based on my professional expertise, the permanent refuse <br />structures at the Deserado mine are being constructed in conformance with the prudent state-of- <br />the-art construction practices as they relate to coal processing waste bank constmction. Further, <br />the structures are being constructed in compliance with the approved design, as specified within <br />Section IILB.3 of the approved permit documents and depicted on Maps 76, 77, 77A and 150 <br />and other permit documents or maps as amended from time to time. <br />I certify, based on my field observations and those observations of my qualified designates and <br />professional investigations, as detailed above, that the permanent refuse disposal structures at <br />Blue Mountain Energy, Inc., Deserado Mine, located in Rio Blanco County, Colorado, are being <br />constructed in compliance with the design approved as a portion of Permit No. C-1981-18, <br />issued by the Colorado Division of Reclamation, Mining and Safety. <br />Colorado Registered P.E. No. 30263 <br />xc: Jeff Dubbert <br />Scott Wanstedt <br />File <br />