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C AVEIONICS PROPRIETARY & CONFIDENTIAL <br />• Mine Water Treatment — Peabody Energy Page 10 of 48 <br />4. Prepminary Design Ealuatioln <br />4.1 Treatment System Specification Design <br />Building on past success, Water Tectonics approaches an application of this scope <br />by completing several product, site and client scoping activities to ensure that all <br />requirements are outlined to expectations. Below are several activities that Water <br />Tectonics proposes to be completed in order to deliver a full -scale multi -stage <br />system. <br />4.1.1 Preliminary Design Specification (Complete) <br />Water Tectonics has completed this initial step through the following <br />activities - <br />• Bench - testing of a 40 gallon sample provided by Peabody Energy <br />(TCC) from the Twenty Mile Coal site (report in appendices). <br />• Preliminary lease /purchase submittals sent to TCC between <br />September 2009 and December 2009. <br />• Interview with Jerry Nettleton in Denver, CO on January 6, 2009 to <br />discuss earlier submittals. <br />Preliminary conclusions are — <br />• Water Tectonics possesses the technology, equipment and breadth <br />• of resources to deliver a solution that meets TCC's specifications. <br />• A multi -stage treatment system is required to meet TCC's <br />specifications. <br />• Chemical precipitation methods to reduce the sulfate do not <br />provide enough benefit to offset the incremental chemical cost, <br />operating complexity and additional solids generation. <br />4.1.2 Design Pilot Trial <br />In preparation to deliver a fully operation system, Water Tectonics will <br />establish a pilot system on -site in Colorado. This effort will provide the <br />necessary information required for final. The pilot equipment configuration <br />will contain all primary and critical components required for the full -scale <br />system evaluation. The flow design will be based on a 20 -50 GPM pre- <br />treatment (electrocoagulation) to water treatment system (two -stage <br />reverse osmosis) of 20 GPM. <br />Design Pilot Trial will focus on further defining the following items — <br />• Final quantification of operating consumables <br />• Final quantification and characteristics of waste stream <br />• Installation Bill of Materials <br />• Site - Specific System Operations Manual <br />• Final equipment specification for fabrication <br />J <br />Document Version: 4.0 © Water Tectonics, Inc. 2008. All rights reserved. /� <br />W WATERTECTONICS <br />