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MIA MIR /MI <br />NorthWest Colorado Consultants, Inc.) <br />r _ 1 - MIA VW <br />Geotedinkal 1 Enviromnental Enginearag • Materials Testing <br />Subject: Quarterly Observation Report, Refuse Pile, <br />Foidel Creek Mine, Routt County, Colorado. <br />Mr. Nettleton, <br />January 4, 2012 <br />Twentymile Coal Company <br />29515 RCR #27 <br />Oak Creek, CO 80467 <br />Attn: Mr. Jerry Nettleton <br />Job Number: 99 -3983 <br />As requested, NWCC, Inc. (NWCC) has prepared this report outlining our observations made during the <br />fourth quarter of 2011 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek Mine <br />in Routt County, Colorado. During this quarter, Tim Travis of NWCC visited the project site on December <br />29, 2011 to provide the quarterly inspection/observations of the Refuse Pile. <br />In addition, a representative of NWCC visited the refuse pile on October 24 and December 14, 2011 to take <br />compaction tests in the new Expansion Area of the refuse pile. A total of eight compaction tests (#477 to <br />#484) were taken in Expansion Area during this quarter. All of the tests taken during this quarter met the <br />minimum compaction requirement of 90% of the maximum standard Proctor density. Copies of the <br />compaction test results and the daily field reports are attached. It should be noted that the abbreviations <br />given in the Nuclear Density Test Results (Proctor Data) are as follows: Maximum DD = Maximum Dry <br />Density and OMC = Optimum Moisture Content. Both of these values have been determined in accordance <br />with ASTM D698. <br />At the time of our site visit on December 29, 2011, 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 and compacting the refuse coal in the new Expansion Area. <br />It should be noted that at the time of our visit, we did not observe any signs of instability, structural <br />weakness or hazardous conditions at the pile. It should also be noted that the internal roadways in the new <br />expansion area of the pile were in good condition. The upper haul road to Areas 2, 3 and 4 of the refuse <br />pile was covered with 3 to 4 inches of snow, but appeared to be in good condition. <br />As suggested, the water levels in the monitor wells installed on October 23, 1997 and December 9, 1999 <br />were measured during this quarter on a monthly basis. A table and graphs showing the monthly water <br />levels are attached. As noted in our previous report, the water level in Monitor Well N increased <br />(970) 879 -7888 • Fax (970) 879 -7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />