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Geoteciinleal / Environmental Engtnearing - Materials Testing <br />Celebrating "" Years of "Service <br />2— 12 <br />July 6, 2012 <br />TNventyrnile Coal Company <br />29515 RCR 827 <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, Rona County, Colorado. <br />Mr. Nettleton, <br />As requested, NWCC, Inc. (NWCC) has prepared this report outlining our observations made during the <br />second quarter of 2012 at the Refilse Pile located at Twentymile Coal Company's (TCC) Foidel Creek <br />Mine in Routt County, Colorado. During this quarter, Tim Travis of NWCC visited the project site oil June <br />29, 2012 to provide time quarterly inspection /observations of the Refuse Pile. <br />In addition, a representative of NWCC visited the refuse pile on June 21, 2012 to take compaction tests in <br />the new Expansion Area of the refuse pile. A total of four compaction tests ( 9489 to #492) were taken in <br />Expansion Area during this quarter. All of the tests taken during this quarter 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 time 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 oil June 29, 2012, we completed a cursory site inspection of the existing refuse <br />pile. Based oil 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. At the time of our site visit the <br />refuse coal had been compacted to near the first bench along the east side of the stockpile. <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 time 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 also in good condition. The surface drainage conditions generally appeared to be adequate across <br />the top and sides of the pile. <br />(970) 879 -7888 • Fax (970) 879 -7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />