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rthWest Colorado Consultants. Inc. <br />Geotechnical / Environmental Engineering • Materials Testing <br />October 6, 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. (NWCC) has prepared this report outlining our observations made during the <br />third quarter of 2009 at the Refuse Pile, which is located at Twentymile Coal Company's (TCC) Foidel <br />Creek Mine in Routt County, Colorado. During this quarter, Brian Len and Tim Travis of NWCC visited <br />the project site on September 28, 2009 to provide our quarterly inspection/observations. In addition, a <br />representative of NWCC visited the refuse pile on August 3 and September 9, 2009 to take compaction <br />tests in Area 4. A total of eight compaction tests (#422 to #429) were taken in Area 4 during these visits. <br />All of the tests taken met the minimum compaction requirement of 90% of the maximum standard Proctor <br />density. Copies of the compaction test results and the daily field report are attached. It should be noted <br />that the abbreviations given in the Nuclear Density Test Results (Proctor Data) are as follows: Maximum <br />DD = 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 September 28, 2009, we completed a cursory site inspection of the pile. <br />Based on our observations made during this visit, it appeared that the contractor was presently stockpiling <br />the refuse coal in Area 4 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 be noted that the internal roadways in the pile, as well as the <br />haul road were in very good condition. <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 wash plants had produced approximately 118,700 tons of waste coal during the <br />month of July 2009: approximately 102,650 tons during August 2009: and approximately 115,500 tons <br />(970) 879-7888 • Fax (970) 879-7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487