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AAGAPITO ASSOCIATES, INC. <br />Mining & Civil Engineers & Geologists <br />715 HORIZON DR., STE 340 <br />GRAND JUNCTION, CO 81506 <br />USA <br />VOICE 970.242.4220 <br />www agapito.com <br />May 25, 2012 <br />Daniel I. Hernandez <br />Senior Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Re: New Elk Mine (Permit No C- 1981 -012) <br />Technical Revision Application No. 66 (TR 66) <br />DWDA #2 Slope Stability Evaluations <br />Dear Mr. Hernandez, <br />GOLDEN OFFICE <br />303.271.3750 <br />723 -01 T3 <br />As you are aware, the existing development waste storage area (DWDA) referred to as <br />DWDA #2 was originally permitted to be constructed to a height of 30 feet (ft) with 1.5 <br />horizontal(H):1 vertical(V) side slopes. New Elk Coal Company (NECC) would like to change <br />the permitted side slope design to a height of 50 ft with 2.0(H):1(V). Agapito Associates, Inc. <br />(AAI) has performed a slope stability evaluation of the DWDA #2 stockpile as submitted under <br />TR 66. This letter summarizes the results of the slope stability analysis and provides <br />recommendations for future construction of the DWDA #2. <br />Computer -Aided Modeling and Analysis <br />At present, DWDA #2 has a base (ground surface) width and length of approximately <br />150 ft by 1,250 ft, respectively. The toe of the waste rock embankment is at an elevation of <br />7,440 ft on the west end and at an elevation of 7,420 ft on the east end. The maximum height of <br />the embankment is intended to be 50 ft and the crest elevation would somewhat parallel the <br />ground surface and range from 7,480 ft on the west end to 7,450 ft on the east end. The general <br />configuration of the DWDA #2 embankment and the location of the section considered in the <br />analysis is shown in Figure 1. <br />The section analyzed was modeled with the mine waste rock embankment at 2(H):1(V) <br />side slopes and with the maximum proposed crest height of 50 ft. For conservatism, the section <br />also includes a wider crest of the waste rock mass to ensure that the greatest driving force is <br />realized. Several groundwater levels were evaluated including groundwater locations at the <br />existing ground surface, groundwater level at 5 ft, 10 ft and 20 ft above the existing ground <br />surface into and across the waste rock pile. <br />GEOENGINEERING • MINING ENGINEERING - CIVIL ENGINEERING <br />TR 66 Page E 37 -2 Revised 5/25/2012 <br />