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Geatechnlcal / Environmental .Engineering - Materials Tesdng <br />October 8, 2010 <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 2010 at the Refuse Pile, which is located at Twentymile Coal Company's (TCC) Foidel <br />Creek Mine in Routt County, Colorado. During this quarter, Tim Travis of NWCC visited the project site <br />on September 29, 2010 to provide the quarterly inspection/observations of the Refuse Pile. <br />It was noted in our quarterly inspection report for the second quarter of 2010 dated July 30, 2010 that no <br />compaction tests were taken between April and June of 2010. However, a representative of NWCC visited <br />the refuse pile on April 12, 2010 to take compaction tests in Areas 2, 3 and 4. A total,of five compaction <br />tests (#437 to #441) were taken in Areas 2, 3 and 4 during this visit. <br />In addition, a representative of NWCC visited the refuse pile on July 14, 2010 to take compaction tests in <br />the Expansion Area of the refuse pile. A total of five compaction tests (#442 to #446) were taken in <br />Expansion Area near the newly constructed underdrain during this visit. All of the tests taken on these <br />dates met the minimum compaction requirement of 90% of the maximum standard Proctor density. Copies <br />of the compaction test results and the daily field reports 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 September 29, 2010, we completed a cursory site inspection of the existing <br />pile. Based on our observations made during this visit, it appeared that the contractor was presently <br />stockpiling the refuse coal in Areas 2, 3 and 4 of the pile, as well as along the newly constructed underdrain <br />in the refuse pile expansion area. <br />The surface drainage conditions generally appeared to be adequate across the top and sides of the existing <br />pile. However, the shallow erosion channel located on the lower bench on the east side of the refuse pile, <br />(970) 879-7888 a Fax (970) 879-7891 <br />2580 Conner Ridee Drive • Steamboat Snrings. CO 80497