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March 30, 2012 <br />2 <br />1.0 Introduction <br />In compliance with Rule 4.09.1 (11) of the Regulations of the Colorado Mined Land Reclamation Board <br />for Coal Mining, a quarterly inspection and report on the construction and associated activities of the <br />Horse Gulch Fill (HGF) at Trapper Mine in Craig, Colorado has been completed. The quarterly inspection <br />was conducted on March 28, 2012, by Tonia M. Perkins, a licensed professional engineer in the State of <br />Colorado. <br />Construction activity related to the fill has been consistent with the approved design. Details of this <br />design can be found in Agapito Associates, Inc.'s (AAI) Horse Gulch Fill Stability Analysis, dated May 29, <br />2009. <br />Both the south west side of the dump and the north east spoil side of the dump were inspected this <br />quarter. No appearances of instability, structural weakness, or other hazardous conditions were <br />observed. The area where a spring was discovered during the third quarter 2011 inspection was <br />inspected. There were signs of running water, refer to photograph 1, although no discernible flow <br />existed at the time of the inspection. <br />L. <br />Photograph 1: Trench Backfilled with Screened Rock above 7470' Elevation Looking North (3128112) <br />