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To: Chris Nyikos, Project Manager - Mountain Coal Company <br />Subject: Geotechnical Review of Updated PR-2 Conveyor Alignment <br />Date: July 17, 2009 <br />Project: 06/26-1004 <br />Proposed Coal Handling and Preparation Plant Facilities <br />Mountain Coal Company (MCC) is investigating the possible addition of a new Preparation Plant and coal <br />handling facilities at the West Elk Mine. As part of the investigation, MCC asked Barr to provide a <br />conceptual geotechnical review of proposed foundation locations (provided by MCC) for the Coal <br />Conveyor Corridor (PR-2), the TC-1/PR-2 Transfer Station location, and the Lower Refuse Pile (LRP) <br />Screening and Preparation Plant. <br />MCC provided the conveyor alignment and profile drawings developed by the structural design <br />engineering firm Roberts & Schaefer. The alignment positions a majority of the conveyor structure on the <br />hillside north of the access road and beyond the slope crest, and as such, poses additional stability risk. <br />MCC provided preliminary site plan and conveyor profile drawings developed for the project by Roberts & <br />Schaefer and sent limited geotechnical information for the LRP. The site plan includes a new TC-1/PR-2 <br />Transfer Station that will be fed by the existing R-1 conveyor (extension required), as well as a new TC-1 <br />conveyor with ground-load feed hopper. The TC-1/PR-2 Transfer Station will produce an 8" minus ROM <br />product for transfer to the proposed Preparation Plant, an 8" plus coal product to be returned to storage, <br />and a trash/rock by-product for disposal. The 8"minus coal will be transferred by a new PR-2 conveyor to <br />the proposed Screening and Preparation Plant location on the LRP. <br />Issues Addressed in this Review <br />The primary tasks addressed in this geotechnical review for the proposed preparation plant and coal <br />handling facilities include the following: <br />• Conveyor alignment cross-sections, slope stability modeling, and incorporating any updated <br />drilling data <br />• Stabilization requirements and associated recommendations <br />• Conceptual review for stabilization requirements associated with the proposed Preparation Plant <br />on the Lower Refuse Pile (LRP) site <br />-2-