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est Goloraao <br />Geohehnkal / Envhoamental Engineering - Materials Testing <br />April 9, 2010 <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 />G0v'VO <br />0\110 ?\ng a`;o ?3Eerl <br />As requested, NWCC, Inc. (NWCC) has prepared this report outlining our observations made during the <br />first quarter of 2010 at the Refuse Pile, which is located at Twentymile Coal Company's (TCC) Foidel <br />Creek Mine in Routt County, Colorado. During this quarter, Tim Travis of NWCC visited the project site <br />on March 30, 2009 to provide quarterly inspection/observations. In addition, a representative of NWCC <br />visited the refuse pile on February 2, 2010 to obtain a sample of the materials being stockpiled for use as <br />Filter Layer I for the proposed underdrain in the new area of the refuse pile. <br />No compaction tests were taken in Areas 2, 3 and 4 of the existing refuse pile during this quarter. It is our <br />understanding that the long wall had been moved and the generation of coal requiring washing was <br />minimal and the materials that were generated from the wash plant were being stockpiled and not <br />compacted at this time. <br />At the time of our site visit on March 30, 2010, we completed a cursory site inspection of the pile. Based <br />on our observations made during this visit, it appeared that the contractor was presently stockpiling the <br />refuse coal in Areas 2, 3 and 4 of the pile. <br />The surface drainage conditions generally appeared to be adequate across the top and sides of the pile. <br />However, a shallow erosion channel had developed on the east side of the refuse pile. We recommend that <br />the channel be re-graded so that the drainage does not concentrate in this area and cause further erosion. It <br />should be noted that at the time of our visit, we did not observe any signs of instability, structural weakness <br />or hazardous conditions at the pile. It should be noted that the internal roadways in the pile, as well as the <br />haul road were in good condition. The drainage's along the roadways may have to be cleaned or regarded <br />after runoff from the spring is completed. <br />The stripping of the topsoil and cover materials in the refuse pile expansion had also started. Bower <br />Brothers had begun stockpiling the topsoil and cover materials in the southern and eastern portions of the <br />site. The contractor was also stockpiling materials for the construction of the underdrain for the refuse pile <br />(970) 879-7888 - Fax (970) 879-7891 <br />Or%Rn r`.nnnor Riei..o rlri„a, e Cfeamhnnf Cnrinna r`rl ACIAR7