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Slope Evaluation and Remediation <br />West Elk Mine <br />Somerset, Colorado <br />PURPOSE AND SCOPE OF STUDY <br />This report presents the results of a subsurface exploration program performed by <br />GROUND Engineering Consultants, Inc., (GROUND) in order to develop geotechnical <br />recommendations regarding a recent landslide feature at the West Elk Mine located near <br />Somerset, Colorado. Our work was performed in general accordance with Scope 2 as <br />outlined in GROUND's proposal number 1107 -1179, dated August 4, 2011. Any <br />prospective buyer or future ownership must be made aware of and must agree to the <br />terms, conditions, and liability limitations outlined in the proposal. <br />A subsurface exploration program was conducted to obtain information on subsurface <br />conditions. Material samples obtained during the subsurface exploration were tested in <br />the laboratory to provide data on the classification and engineering characteristics of the <br />on -site soils. The results of the subsurface exploration and laboratory testing are <br />presented herein. <br />This report has been prepared to summarize the data obtained and to present our <br />conclusions and recommendations based on the proposed construction and the <br />subsurface conditions encountered. Design parameters and a discussion of engineering <br />considerations related to remediation of the proposed recent landslide are provided <br />herein. <br />PROPOSED CONSTRUCTION <br />We understand a recent landslide <br />feature is experiencing continued <br />movement at the shoulder of the <br />slope supporting a large coal storage <br />bench within or near the approximate <br />limits of an in- filled gully (local <br />drainage). The recent landslide under <br />evaluation by this scope of service is <br />within a larger and older landslide <br />complex that is active and under review and instrumentation observations by others. We <br />understand that the older landslide complex is currently moving at an approximate rate <br />of 1 inch per year. The recent more localized landslide feature is moving episodically at <br />Job No. 11 -6014 GROUND Engineering Consultants, Inc. Page 1 <br />