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Geotechnlcal 1 Envlronmgntal Englneering • Materlals Testing <br />Celebrating 2b Years of Service <br />,9992 - 012 <br />July 8, 2013 <br />Twentymile 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 (luring the <br />second quarter of 2013 at the Refuse Pile located at Twentymile Coal Company's (TCC) Foidel Creek <br />Mine in Routt County, Colorado. During this quarter, Timothy Travis of NWCC visited the project site on <br />June 28, 2013 to provide the quarterly inspectionlobservations of the Refilse Pile. <br />In addition, a representative of NWCC visited the refuse pile on June 10, 2013 to take compaction tests in <br />the new Expansion Area of the refilse pile. A total of five compaction tests ( 9501 to #505) were taken in <br />Expansion Area during this quarter. All of the tests taken during this quarter met the minimurn 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 />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 on June 28, 2013, we completed a cursory site inspection of the existing refuse <br />pile. Based on 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. <br />Based on our observations, we (lid not observe any signs of instability, structural weakness or hazardous <br />conditions at the pile. The internal roadways in the new expansion area of the pile, as well as the upper <br />haul road to Areas 2, 3 and 4 of the refuse pile were in good condition. Based on our observations, the <br />surface drainage conditions generally appeared to be adequate across the top and sides of the pile. <br />We were advised that the wash plants had produced approximately 103,446 tons of waste coal during the <br />month of April 2013: approximately 116,705 tons during May 2013: and approximately 59,984 tons during <br />June 2013. It is our understanding that the fines being produced at the wash plant, which consists of <br />(970) 879 -7888 • Fax (970) 879 -7891 <br />2580 Copper Ridge Drive • Steamboat Springs, CO 80487 <br />