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MIN-NG.LLC <br />FOURTH QUARTER 2006 <br />,NGINEERING INSPECTION <br />EAST YARD, WEST VALLEY FILL AND II WEST <br />COAL MINE WASTE DISPOSAL PILES <br /> <br />The approved Oxbow Mining, LLC (OMLLC) Mine permit includes a requirement for quarterly inspections of <br />coal mine waste piles for stability. The inspection is to be performed by a registered engineer or other qualified <br />professional specialist, who is experienced in the construction of earth and rockfill embankments. On <br />December 27, 2006 visual inspections were performed of the East Yard, West Valley Fill and II West coal mine <br />waste disposal areas. <br />EAST YARD -The East Yazd disposal area has reached its design capacity, and no new waste material has <br />been placed since June of 2001. The revegetated slope was inspected for signs of erosion or instability and <br />vegetation establishment. No erosional features were noted requiring repairs to revegetated areas. The covering <br />of the waste pile is considered complete. The lower portion of the ramp was seeded this quarter. Nothing was <br />observed during the inspection that would indicate the pile has a potential for structural failure. <br />WEST VALLEY FILL -The West Valley Fill had received additional waste material (approximately 2040 cy), <br />intermittently, during the fourth quarter of 2006 up to the approximate 6225' elevation. As the material was <br />waiting spreading and compaction, compaction tests have not yet been completed. Spreadmg and compaction <br />is anticipated to be completed early during the first quarter of 2007. <br />The revegetated outsiope located between the fill slope tce to the approximate 6200 elevation was inspected for <br />signs of erosion and instability. No erosional features were noted requiring repairs to any vegetated areas. The <br />third bench (approximate 6200 elevation) setback remains established for the fmal lift of waste material and the <br />ramp constructed on the waste pile to provide access to the II West Coal Refuse Facility light use road and haul <br />road. These two roads continue to be utilized. No springs or seeps were noted. Surface drainage control <br />features are performing according to the plan. Nothing was observed during the inspection that would indicate <br />the West Valley Fill has a potential for structural failure. <br />II WEST - The II West disposal area received additional coal mine waste material during the fourth quarter of <br />2006. Approximately 280 cy of waste material was hauled and placed in II West to the approximate 6157' <br />elevation. No compaction tests were conducted during the quarter. The limited amount of outs(ope located <br />below the present approximate 6060' elevation was seeded during the quarter with the approved seed mix. No <br />springs or seeps were noted. Surface drainage control features aze performing according to the plan. Nothing <br />was observed during the inspection that would indicate the II West Fill has a potential for structural failure. <br />26 <br />3737 Hwy 133 P.O. Box 535 Somerset, Colorodo 81434 USA <br />TEL (970) 929-5122 FAX (970) 929-5177 <br />