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Permanent out slopes remain at approximately 95% complete on the toe of sub -area 2 -3 and 4. <br />The infill between these sub -areas is complete. The slopes appeared stable with some localized <br />erosion noted. <br />Eleven compaction tests were performed during the second quarter. All tests had Proctor values <br />above 90 %. Refuse was placed, spread and compacted during the quarter. <br />Refuse Area 5A has progressed to the point where the drainage characteristics are starting to <br />evolve. The in -pit ditch on the west side is established with appropriate channel protection to <br />carry the projected runoff. <br />To date, a total of 5,637,266 tons of wet refuse have been placed in the 2/3/4 combined sub -area <br />and a total of 3,776,622 tons of wet refuse have been placed in sub -area 5A. <br />The topsoil and subsoil piles for sub -areas 1, 2/3/4 and 5A have been seeded and are stable. <br />Vegetative growth appears adequate to control erosion on the piles. The disturbed top surface of <br />the subsoil pile for sub -area 5A was seeded in the fall of 2010 and the perennial vegetation is <br />now well established. <br />Quarterly monitoring of RP -4 refuse pond embankment has continued, and appears to be stable. <br />To the best of my knowledge, based on my professional expertise, the permanent refuse <br />structures at the Deserado mine are being constructed in conformance with the prudent state -of- <br />the -art construction practices as they relate to coal processing waste bank construction. Further, <br />the structures are being constructed in compliance with the approved design, as specified within <br />Section III.B.3 of the approved permit documents and depicted on Maps 76, 77, 77A and 150 <br />and other permit documents or maps as amended from time to time. <br />I certify, based on my field observations and those observations of my qualified designates and <br />professional investigations, as detailed above, that the permanent refuse disposal structures at <br />Blue Mountain Energy, Inc., Deserado Mine, located in Rio Blanco County, Colorado, are being <br />constructed in compliance with the design approved as a portion of Permit No. C- 1981 -18, <br />issued by the Colorado Division of Reclamation, Mining and Safety. <br />Respectfully, <br />Jason L. Tuttle, <br />Project Engineer <br />Colorado Registered P.E. No. 43992 <br />xc: JeffDubbert <br />Scott Wanstedt <br />File <br />