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Northwest Colorado Consultant <br />Geotechnicai / Environmental Engineering • Materials Testing <br />July 10, 2008 <br />Twentymile Coal Company <br />29515 RCR #27 <br />Oak Creek, CO 80467 <br />Attn: Mr. Jerry Nettleton <br />Job Number: 99-3983 <br />Subject: Quarterly Observation Report, Refuse Pile, <br />Foidel Creek Mine, Routt County, Colorado. <br />Mr. Nettleton, <br />As requested, NWCC, Inc. has prepared this report outlining our observations made during the second <br />quarter of 2008 at the Refuse Pile, which is located at Twentymile Coal Company's (TCC) Foidel Creek <br />Mine in Routt County, Colorado. During this quarter, we visited the project site on June 30, 2008 to <br />provide our quarterly inspection/observations. In addition, we visited the refuse pile on April 15 and May <br />21, 2008 to take compaction tests in Area 3. Six compaction tests (#374 to #379) were taken in Area 3 <br />during these visits. All of the tests taken met the minimum compaction requirement of 90% of the <br />maximum standard Proctor density. Copies of the compaction test results and the daily field report are <br />attached. It should be noted that the abbreviations given in the Nuclear Density Test Results (Proctor Data) <br />are as follows: Maximum DD = Maximum Dry Density and OMC = Optimum Moisture Content. Both of <br />these values have been determined in accordance with ASTM D698/AASHTO T99. <br />At the time of our site visit on June 30, 2008, we completed site inspections of the pile. Based on our <br />observations made during this visit, it appeared that the contractor was presently stockpiling the refuse coal <br />in Areas 2, 2'h and 3 of the pile. <br />The surface drainage conditions generally appeared to be adequate across the top and sides of the pile. It <br />should be noted that at the time of our visit, we did not observe any signs of instability, structural weakness <br />or hazardous conditions at the pile. It should also be noted that the roadways throughout the pile were in <br />much better shape than during our previous site visit in March. <br />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 the monthly water <br />levels are attached. <br />We were advised that the old and new wash plants had produced approximately 108,300 tons of waste coal <br />during the month of April 2008: 116,600 tons during May 2008: and approximately 115,400 tons during <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487