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• <br />Geoeochnicw I Eaviramr4fttal ar4owmas • Hatcriah T'=dn3 <br />Subject: Proposal/cost estimate for <br />Professional Services, Geotechnical <br />Investigation — Proposed Sage Creek <br />Conveyor Corridor, Routt County, <br />Colorado. <br />Dear Mr. Kasper, <br />April 15, 2011 <br />Sage Creek Coat Company <br />c/o ThyssenKrupp Robins Inc. <br />7730 E Beileview Ave., #404 <br />Greenwood Village, CO 80111 <br />Attn: Steve Kasper <br />• NWCC, Inc. (NWCC) is pleased to submit this proposal and cost estimate to conduct a <br />Geotechnical Investigation for the proposed Sage Creek Conveyor Corridor to be constructed <br />from the new Sage Creek Mine facility to the existing Twentymile Coal Mine facility in Routt <br />County, Colorado. <br />It is our understanding that a 25 foot wide corridor will be constructed from the new Sage Creek <br />Mine facilities to the existing Twentymile Coal Dine facilities (wash plant and rail loading ). The <br />25 foot wide corridor will have a service road on one side and the new conveyor on the other. It <br />is anticipated the new corridor will be approximately g miles long and have numerous road, <br />creek, railroad and animal crossings. It is also our understanding that several transfer towers will <br />be constructed along the corridor. Based on our understanding of the proposed construction, our <br />review of the preliminary profile and layout plans provided by ThyssenKrupp Robins, and our <br />experience with other projects in this area, we propose the following: <br />Scope of Work: <br />1) Advance thirty -five (35) to forty (40) test holes along the new conveyor corridor situated <br />between the two mines. Test holes will be located at the new transfer towers, road <br />crossings, creek crossing, railroad crossing and animal crossings, as well as at a spacing <br />of approximately 1,500 feet along the corridor. The depth of the test holes will be <br />determined in the field as the drilling progresses and as the subsoil profiles become <br />evident. Based on experience, we have assumed that the test holes will be drilled to <br />depths ranging from 10 to 30 feet beneath the existing ground surface; however, the final <br />• (970) 879 -7888 a Fax (970) 879 -9891 <br />2580 Copper Ridge Drive - Steamboat Springs, CO 80497 <br />