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Geotechnical I Environmental Engineering - Materials Testing <br />April 7, 2009 <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 first quarter <br />of 2009 at the Refuse Pile, which is located at Twentymile Coal Company's (TCC) Foidel Creek Mine in <br />Routt County, Colorado. During this quarter, we visited the project site on March 30, 2009 to provide our <br />quarterly inspection/observations. In addition, we visited the refuse pile on January 30, February 20 and <br />March 5, 2009 to take compaction tests in Areas 3 and 4. Six compaction tests (9402 to #407) were taken <br />in Area 4 and three compaction tests (#408 to #410) were taken in Area 3 during these visits. All of the <br />tests taken met the minimum compaction requirement of 90% of the maximum standard Proctor density. <br />Copies of the compaction test results and the daily field report are attached. It should be noted that the <br />abbreviations given in the Nuclear Density Test Results (Proctor Data) are as follows: Maximum DD = <br />Maximum Dry Density and OMC = Optimum Moisture Content. Both of these values have been <br />determined in accordance with ASTM D698. <br />At the time of our site visit on March 30, 2009, we completed a cursory site inspection of the pile. Based <br />on our observations made during this visit, it appeared that the contractor was presently stockpiling the <br />refuse coal in Area 4 of the pile. We also observed that the soil cover materials had been placed over the <br />waste coal along the north side of Area 1 since our previous inspection in December 2008. <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 be noted that the majority of the pile was covered with 2 to 4 <br />inches of snow at the time of our site visit, with the exception of the portion of Area 4 in which the refuse <br />coal was being stockpiled. It should also be noted that the roadways throughout the pile were severely <br />rutted and a considerable amount of runoff was flowing down the ruts in the roadway surface. <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. It should be noted that well 4MW was damaged/buried during movement of topsoil on <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive - Steamboat Springs, CO 80487