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Geolechnical / Envir <br />pnMental Engineering - Materials Testing <br />Celebrating y20 ,,ea' of service <br />'S <br />12 <br />April 5, 2013 <br />Twentyinile Coal Company <br />29515 RCR #27 <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, Routt County, Colorado. <br />Mr. Nettleton, <br />As requested, NWCC, Inc, (NWCC) has prepared this report outlining our observations made during the <br />first quarter of 2013 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek Mine in <br />Routt County, Colorado. During this quarter, Timothy Travis of NWCC visited the project site oil March <br />29, 2013 to provide the quarterly inspection./observations of the Refuse Pile. <br />In addition, a representative of NWCC visited the refuse pile on February 5, 2013 to take compaction tests <br />in the new Expansion Area of the refuse pile. A total of four compaction tests (9,197 to 4500) 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 the Nuclear Density <br />'Pest 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 on March 29, 2013, we completed a cursory site inspection of the existing <br />refuse pile. Based on our observations made during this visit, it appeared that the contractor was presently <br />stockpiling and compacting the reftise coal in the new Expansion At•ea. <br />It should also be noted that at the time of our visit the majority of the refuse pile was covered with snow, <br />with the exception of the main halt] road and the stockpile at-ca. Based on our limited observations, we did <br />not observe any signs of instability, structural weakness or hazardous conditions at the pile. The internal <br />roadways in the new expansion area of the pile were in good condition; however, the upper liaill road to <br />Areas 2, 3 and 4 of the refuse pile was covered with snow and these areas were not accessible. Based oil <br />limited observations, the surface drainage conditions generally appeared to be adequate across the top and <br />sides of the pile. <br />(970) 879-7888 * Fax (970) 879-7891 <br />2580 Copper Ridge Drive - Steamboat Springs, CO 80487 <br />