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ortnWest Colorado Consu <br />Geotechnical / Environmental Engineering • Materials Testing <br />January 5, 2011 <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 />fourth 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 December 28, 2010 to provide the quarterly inspection/observations of the Refuse Pile. <br />In addition, a representative of NWCC visited the refuse pile on October 29 and December 23, 2010 to take <br />compaction tests in the new Expansion Area of the refuse pile. On October 29, 2010, a total of five <br />compaction tests (#447 to #451) were taken in Expansion Area near the newly constructed underdrain <br />during this visit. On December 23, 2010, a total of two compaction tests (#452 and #453) were taken at the <br />western end of the new Expansion Area. All of the tests taken on these dates met the minimum compaction <br />requirement of 90% of the maximum standard Proctor density. Copies of the compaction test results and <br />the daily field reports are attached. It should be noted that the abbreviations given in the Nuclear Density <br />Test Results (Proctor Data) are as follows: Maximum DD = Maximum Dry Density and OMC = Optimum <br />Moisture Content. Both of these values have been determined in accordance with ASTM D698. <br />At the time of our site visit on December 28, 2010, we completed a cursory site inspection of the existing <br />refuse pile. Based on our observations made during this visit, it appeared that the contractor was presently <br />stockpiling the refuse coal in western portion of the new Expansion Area over the west end of the recently <br />constructed underdrain. <br />The surface drainage conditions generally appeared to be adequate across the top and sides of the existing <br />pile. However, the shallow erosion channels located on the lower bench on the east side of the refuse pile, <br />as noted in our previous inspection report, did not appear to have been repaired. We recommend that these <br />erosion areas be re-graded so that the runoff does not concentrate in these areas and cause further erosion. <br />(970) 879-7888 a Fax (970) 879-7891 <br />2580 Conner Ridoe T)rive. • RtPamhnnt Cnrinac (`r) RCIA97