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XBOW MINING LLC <br />ENGINEERING INSPECTION <br />EAST YARD, WEST VALLEY FILL AND II WEST <br />COAL MINE WASTE DISPOSAL PILES <br />`'I I / <br />' I <br />-9( • . _a_ Li. f\ l C rJt <br />/ Inspected by James A <br />° & 4 O <br />Thomas C. Anderson Dale <br />C olorado Licensed Professional Engineer No. 14726 <br />3137 Hwy 1 33 • P.O. Box 5',5 • Sorner,ef, Colorado 81 434 USA <br />TEL (970) 929 -5122 • FAX (970) 92951 7/ <br />The approved Oxbow Mining, LLC (OMLLC) Mine permit includes a requirement for quarterly inspections of <br />coal mine waste piles for stability. The inspection is to be performed by a registered engineer or other qualified <br />professional specialist, who is experienced in the construction of earth and rockfill embankments. On September <br />20, 2012 visual inspections were performed of the East Yard, West Valley Fill and II West coal mine waste <br />disposal areas. Four successful compaction tests were performed during the quarter on August 16, 2012. Copies <br />are attached. <br />EAST YARD - The East Yard disposal area has reached its design capacity, and no new waste material has been <br />placed since June of 2001. The revegetated slope was inspected for signs of erosion or instability. No erosional <br />features were noted on the slope. The covering of the waste pile is considered complete. Nothing was observed <br />during the inspection that would indicate the pile has a potential for structural failure. <br />WEST VALLEY FILL — During the second quarter, no waste was hauled to the West Valley Fill area. The <br />refuse pile was surveyed at the approximate 6226.8' elevation. The active waste storage area will continue to be <br />an interim storage area for refuse rehandled later to II West and a staging area for miscellaneous projects . <br />The revegetated outslope located between the fill slope toe to the approximate 6200' elevation was inspected for <br />signs of erosion and instability. No erosional features were noted on the slope. The area was checked for noxious <br />weeds. The third bench (approximate 6200' elevation) setback remains established for the final lift of waste <br />material and the ramp constructed on the waste pile to provide access to the II West Coal Refuse Facility light <br />use road and haul road. These two roads continue to be utilized. No springs or seeps were noted. Surface <br />drainage control features are performing according to the plan. Nothing was observed during the inspection that <br />would indicate the West Valley Fill has a potential for structural failure. <br />I I WEST — The II West disposal area received approximately 4,640 cy additional coal mine waste during the <br />third quarter of 2012. II West waste is at the approximate 6128.8' elevation. The material continues to be <br />worked to meet compaction requirements. The rock underdrain crest is at a point where it will need to be <br />extended to accommodate additional waste. The regraded outslope seeded on December 2, 2011 remains stable. <br />Older seeded areas are performing according to the plan. No springs or seeps were noted. The area was checked <br />for noxious weeds and treated as appropriate. Surface drainage control features are performing according to the <br />plan. A portion of the East Surface Rock Channel remains temporarily covered with fabric and road materials <br />while being used as an access ramp to the pile. Nothing was observed during the inspection that would indicate <br />the II West Fill has a potential for structural failure. <br />