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EVALUATION OF SOMERSET COAL INTERNATIONAL INC.’S SOLID BOWLDECANTER CENTRIFUGE DEWATERING SYSTEM PREPARED FOR BSL CAPITAL PROJECT NO. 5820 AUGUST 2014 EVALUATION OF SOMERSET COAL INTERNATIONAL INC.’S SOLID BOWL DECANTER CENTRIFUGE DEWATERING SYSTEM PREPARED FOR BSL CAPITAL AUGUST 2014 PROJECT NO. 5820 Mining, Geology and Energy Consultants Weir International, Inc. WEIR

WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

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Page 1: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

EVALUATION OF SOMERSET COAL INTERNATIONAL INC.’S

SOLID BOWL DECANTER CENTRIFUGE DEWATERING SYSTEM

PREPARED FOR

BSL CAPITAL

PROJECT NO. 5820

AUGUST 2014

EVALUATION OF SOMERSET COAL INTERNATIONAL INC.’S

SOLID BOWL DECANTER CENTRIFUGE DEWATERING SYSTEM

PREPARED FOR

BSL CAPITAL

AUGUST 2014

PROJECT NO. 5820

Mining, Geology and Energy ConsultantsWeir International, Inc.

WEIR

Page 2: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

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August 20, 2014 Project No. 5820.3 Email: [email protected] Mr. Todd Eisenbud BSL Capital 667 Madison Avenue New York, New York 10065 Reference: Evaluation of Somerset Coal International Inc.’s Solid Bowl

Decanter Centrifuge Dewatering System Dear Mr. Eisenbud: BSL Capital, Inc. (BSL Capital) retained Weir International, Inc. (WEIR) to evaluate the effectiveness of Somerset Coal International, Inc.’s (Somerset) solid bowl decanter centrifuge dewatering system (Dewatering System) to dewater fine coal slurry and recover a dewatered fine coal saleable product. To determine the effectiveness of the Dewatering System, WEIR developed a protocol to sample the fine coal slurry and the dewatered fine coal product over a defined period of time of sufficient length to obtain the required number of samples to ensure a representative test in accordance with ASTM Sampling Standards. WEIR’s Coal Sampling Protocol, Fine Coal Dewatering System Performance Test is provided in Appendix A. The Dewatering System commenced operation on June 17, 2014 and testing was complete on August 5, 2014. WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade Creek) located in Somerset County, Pennsylvania on July 30, 2014.

Executive Towers West I1431 Opus Place, Suite 210

Downers Grove, Illinois 60515USA

Tel: 630-968-5400

Fax: 630-968-5401

[email protected]

Mining, Geology and Energy Consultants Weir International, Inc.

WEIR

Executive Towers West I1431 Opus Place, Suite 210

Downers Grove, Illinois 60515USA

Tel: 630-968-5400

Fax: 630-968-5401

[email protected]

Mining, Geology and Energy Consultants Weir International, Inc.

WEIR

Page 3: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Mr. Todd Eisenbud August 20, 2014 Page 2 of 6

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Somerset’s Dewatering System Somerset reported that its Dewatering System has been in development for approximately four years. Somerset engaged Centrysis Centrifuge Systems (Centrysis) in Kenosha, Wisconsin to build the trailer mounted Dewatering System. Centrysis is a well-known manufacturer of centrifuges, with over 1,000 Centrysis centrifuges operating world-wide, primarily in the wastewater treatment, dairy, chemical processing, and animal proteins and by-products industries. The Dewatering System utilizes a NEMA 4X PLC control system to operate a feed pump, polymer make-up system, solid bowl decanter centrifuge, and screw conveyor. The Dewatering system employs two motors totaling 310 horsepower, each motor equipped with Variable Frequency Drive. The centrifuge is approximately 30-inches in diameter and 10-feet long. Inside the bowl of the centrifuge is a scroll that collects dewatered material (product). The bowl and scroll are variable speed driven and are capable of producing 3,000 Gs of centrifugal force. Centrysis reported that the Dewatering System can recover approximately 95 percent of the solids in the fine coal slurry. The maximum quantity of fine coal slurry, containing approximately 30 percent solids, that the Dewatering System can effectively dewater is approximately 240 gallons per minute (gpm), producing a fine coal product with approximately 16 to 21 percent moisture. Somerset plans to develop a larger Dewatering System for applications requiring more than 240 gpm. There is no minimum quantity of fine coal slurry required for operation of the Dewatering System. Somerset sited its Dewatering System adjacent to Shade Creek. Pictures of Somerset’s Dewatering System are contained in Appendix B. Test Site Shade Creek utilizes a heavy media cyclone, classifying cyclone, teetered bed separator, and columnar flotation circuits to process Run-of-Mine (ROM) coal. Shade Creek was constructed in 1966 and upgraded by Taggart Global, LLC in 2008. The plant is PLC controlled, with a capacity of 800 ROM tons per hour (tph). Somerset reported that during the test period, Shade Creek operated at approximately 400 ROM tph, with an average preparation yield of 53 percent. Shade Creek processed ROM metallurgical coal from four mines during the test period, but coal from only one mine was processed at any one time. At the request of PBS, Somerset sampled the fine coal slurry and dewatered product as Shade Creek processed coal from each mine during the test period.

WEIR

Page 4: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Mr. Todd Eisenbud August 20, 2014 Page 3 of 6

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For the test of the Dewatering System, PBS rerouted the fine coal slurry (325 mesh x 0) from the screen bowl centrifuge to the Dewatering System. Normally, the fine coal slurry from the screen bowl centrifuge would have reported to Shade Creek’s static thickener and underflow from the thicker would have been discarded (pumped to the refuse disposal area). The fine coal slurry feed pipe was fitted with a mechanism to capture samples of fine coal slurry for testing, just prior to entering the Dewatering System. The clarified water emitted from the centrifuge was pumped back to Shade Creek to use for coal processing. The dewatered fine coal product was conveyed by screw conveyor from the underside of the Dewatering System, directed to a chute where the material was sampled, conveyed to Shade Creek’s clean coal belt conveyor, and comingled with the clean coal product from Shade Creek. Sampling Protocol WEIR developed the sampling protocol for Shade Creek’s fine coal slurry and the Dewatering System’s dewatered fine coal product based on ASTM D 2234 / ASTM D 2234M-03, Standard Practice for Collection of a Gross Sample of Coal. Sampling of the fine coal slurry and the dewatered fine coal product from the Dewatering System was under the direction of Somerset and performed by PBS personnel. PBS requested Somerset sample the fine coal slurry and dewatered fine coal product as ROM coal was being processed by Shade Creek from an individual mine. Since ROM coal from more than one mine may have been processed during a shift, Somerset adjusted the sampling protocol to fit Shade Creek’s ROM coal processing schedule. Somerset reported that samples were taken in accordance with WEIR’s sampling protocol. Fine coal slurry samples were stored in 5 gallon buckets and the dewatered fine coal product samples were stored in air tight plastic bags, properly identified, and retained in an on-site metal building for collection by a third party laboratory. A total of 72 samples (36 slurry and 36 product) were picked up at Shade Creek by Geochemical Testing Environmental and Energy Analysis (GTEEA), and transported to and analyzed by GTEEA’s laboratory in Somerset, Pennsylvania. The total number of samples for the slurry and dewatered product exceeded the minimum number of samples recommended by ASTM’s Standard Practice for Collection of a Gross Sample of Coal. GTEEA determined the percentage of solids contained in each slurry sample and performed a short proximate analysis on each dewatered product sample.

WEIR

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Mr. Todd Eisenbud August 20, 2014 Page 4 of 6

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Test Period and Test Results The test period commenced June 17, 2014 and ended August 5, 2014. The Dewatering System operated 18 days, on either day and/or evening shift(s). Somerset reported that the Dewatering System operated for approximately 500 hours, at an average processing rate of approximately 14.1 tph and produced approximately 7,500 tons of dewatered saleable fine coal product during the test period. WEIR visited Shade Creek on July 30, 2014 and observed the Dewatering System in operation. The Dewatering System appeared to be effectively dewatering the fine coal slurry, based on cake-like appearance of the dewatered product, which in some instances would roll back on the steeply inclined product conveyor. The following test supports WEIR’s opinion that the Dewatering System appeared to be effective in dewatering the fine coal slurry and producing a saleable dewatered fine coal product:

LaboratorySampling Date Identification Ash Sulfur

Date Analyzed Number (%) (%) Btu/Lb Comments

6/18/2014 6/21/2014 14-210038 68.39 15,682 Fine Coal Slurry6/17/2014 6/20/2014 14-209921 18.80 7.88 0.92 11,474 15,649 Fine Coal Product6/19/2014 6/21/2014 14-210039 61.75 15,541 Fine Coal Slurry6/18/2014 6/20/2014 14-209922 20.43 6.14 1.10 11,540 15,715 Fine Coal Product6/24/2014 6/26/2014 14-210415 69.80 15,670 Fine Coal Slurry6/24/2014 6/26/2014 14-210369 18.54 7.44 0.88 11,589 15,657 Fine Coal Product6/24/2014 7/1/2014 14-210743 69.63 15,675 Fine Coal Slurry6/24/2014 6/26/2014 14-210370 17.20 7.91 0.91 11,743 15,681 Fine Coal Product6/25/2014 7/1/2014 14-210744 70.11 15,699 Fine Coal Slurry6/25/2014 7/1/2014 14-210732 17.44 4.92 0.72 12,171 15,676 Fine Coal Product7/8/2014 7/15/2014 14-211659 66.12 15,697 Fine Coal Slurry7/8/2014 7/15/2014 14-211658 7.45 9.68 1.04 13,023 15,715 Fine Coal Product7/9/2014 7/15/2014 14-211660 66.16 15,593 Fine Coal Slurry7/9/2014 7/15/2014 14-211656 20.99 8.03 1.42 11,122 15,671 Fine Coal Product

7/10/2014 7/15/2014 14-211661 73.10 15,705 Fine Coal Slurry7/10/2014 7/15/2014 14-211657 21.02 9.20 1.28 10,917 15,645 Fine Coal Product7/172014 7/22/2014 14-212185 75.81 15,723 Fine Coal Slurry7/17/2014 7/22/2014 14-212179 20.31 7.93 0.96 11,274 15,711 Fine Coal Product7/17/2014 7/22/2014 14-212186 61.50 15,668 Fine Coal Slurry7/17/2014 7/22/2014 14-212180 20.26 7.98 0.99 11,301 15,748 Fine Coal Product7/21/2014 7/25/2014 14-212526 69.54 15,672 Fine Coal Slurry7/23/2014 7/25/2014 14-212507 20.16 5.78 1.06 11,652 15,732 Fine Coal Product7/21/2014 7/25/2014 14-212527 70.87 15,684 Fine Coal Slurry7/21/2014 7/25/2014 14-212503 20.73 6.67 1.15 11,413 15,720 Fine Coal Product7/22/2014 7/25/2014 14-212528 68.43 15,584 Fine Coal Slurry7/22/2014 7/25/2014 14-212499 19.29 5.62 0.82 11,810 15,728 Fine Coal Product7/22/2014 7/25/2014 14-212529 74.78 15,678 Fine Coal Slurry7/22/2014 7/25/2014 14-212500 20.60 5.83 0.75 11,504 15,636 Fine Coal Product7/23/2014 7/25/2014 14-212530 69.70 15,618 Fine Coal Slurry7/23/2014 7/25/2014 14-212501 20.50 8.30 0.97 11,198 15,727 Fine Coal Product

ProductAs Received Basis

DAFBtu/Lb

SlurryMoisture(1)

(%)Moisture

(%)

WEIR

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Mr. Todd Eisenbud August 20, 2014 Page 5 of 6

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LaboratorySampling Date Identification Ash Sulfur

Date Analyzed Number (%) (%) Btu/Lb Comments7/23/2014 7/25/2014 14-212531 69.29 15,604 Fine Coal Slurry7/23/2014 7/25/2014 14-212502 21.19 8.46 1.02 11,016 15,659 Fine Coal Product7/23/2014 7/25/2014 14-212532 73.11 15,718 Fine Coal Slurry7/23/2014 7/25/2014 14-212504 19.44 6.04 0.70 11,771 15,797 Fine Coal Product7/23/2014 7/25/2014 14-212533 71.53 15,729 Fine Coal Slurry7/23/2014 7/25/2014 14-212505 18.70 5.48 0.66 11,953 15,765 Fine Coal Product7/23/2014 7/25/2014 14-212534 73.53 15,741 Fine Coal Slurry7/23/2014 7/25/2014 14-212506 19.44 5.67 0.67 11,787 15,740 Fine Coal Product7/24/2014 7/26/2014 14-212679 72.14 15,650 Fine Coal Slurry7/24/2014 7/26/2014 14-212605 19.64 5.52 0.66 11,789 15,753 Fine Coal Product7/24/2014 7/26/2014 14-212680 72.39 15,687 Fine Coal Slurry7/24/2014 7/26/2014 14-212606 19.95 5.83 0.69 11,696 15,759 Fine Coal Product7/24/2014 7/26/2014 14-212681 74.47 15,677 Fine Coal Slurry7/24/2014 7/26/2014 14-212607 20.14 8.12 1.27 11,239 15,666 Fine Coal Product7/28/2014 8/5/2014 14-213240 70.56 15,698 Fine Coal Slurry7/28/2014 8/5/2014 14-213163 19.33 5.65 0.65 11,788 15,712 Fine Coal Product7/28/2014 8/5/2014 14-213243 70.88 15,622 Fine Coal Slurry7/28/2014 8/5/2014 14-213164 19.96 6.21 1.12 11,572 15,673 Fine Coal Product7/28/2014 8/5/2014 14-213246 69.82 15,572 Fine Coal Slurry7/28/2014 8/5/2014 14-213165 20.13 7.56 0.97 11,306 15,637 Fine Coal Product7/30/2014 8/5/2014 14-213244 72.40 15,655 Fine Coal Slurry7/30/2014 8/5/2014 14-213168 19.63 4.01 0.70 12,009 15,726 Fine Coal Product7/30/2014 8/5/2014 14-213245 70.07 15,658 Fine Coal Slurry7/30/2014 8/5/2014 14-213169 18.84 5.56 0.71 11,825 15,643 Fine Coal Product7/30/2014 8/6/2014 14-213292 68.36 15,651 Fine Coal Slurry7/30/2014 8/5/2014 14-213170 19.90 7.49 0.95 11,408 15,711 Fine Coal Product7/30/2014 8/6/2014 14-213294 71.18 15,698 Fine Coal Slurry7/30/2014 8/5/2014 14-213167 21.68 8.50 0.85 10,882 15,587 Fine Coal Product7/30/2014 8/6/2014 14-213295 70.87 15,729 Fine Coal Slurry7/30/2014 8/5/2014 14-213166 23.02 8.43 0.76 10,671 15,567 Fine Coal Product7/31/2014 8/5/2014 14-213241 71.87 15,732 Fine Coal Slurry7/31/2014 8/5/2014 14-213173 18.93 5.91 0.67 11,832 15,743 Fine Coal Product7/31/2014 8/5/2014 14-213242 70.52 15,703 Fine Coal Slurry7/31/2014 8/5/2014 14-213172 22.26 5.09 1.03 11,389 15,676 Fine Coal Product7/31/2014 8/6/2014 14-213293 68.29 15,654 Fine Coal Slurry7/31/2014 8/5/2014 14-213171 20.23 7.37 1.01 11,350 15,677 Fine Coal Product8/4/2014 8/7/2014 14-213374 68.78 15,677 Fine Coal Slurry8/4/2014 8/7/2014 14-213362 20.09 5.76 0.71 11,656 15,718 Fine Coal Product8/4/2014 8/7/2014 14-213375 69.40 15,683 Fine Coal Slurry8/5/2014 8/7/2014 14-213363 19.95 6.05 1.11 11,614 15,694 Fine Coal Product8/4/2014 8/7/2014 14-213376 68.44 15,695 Fine Coal Slurry8/5/2014 8/7/2014 14-213364 21.15 6.77 1.20 11,353 15,750 Fine Coal Product

70.10 19.65 6.80 0.92 11,545 15,6833.02 2.39 1.36 0.21 418 50

DAF

(1) Slurry moisture equals 100% - Solids %

ProductSlurry As Received Basis

Moisture(1) Moisture

Standard DeviationAverage

(%) (%) Btu/Lb

During the test period, Somerset estimated that the fine coal slurry flow rate varied up to 240 gpm. Based on tests performed by GTEEA, percent solids in the fine coal slurry varied from 24.19 to 38.50 percent, averaging 29.9 percent, with resultant fine coal slurry moisture from 61.5

WEIR

Page 7: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Mr. Todd Eisenbud August 20, 2014 Page 6 of 6

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to 75.81 percent, averaging 70.10 percent. The dewatered fine coal saleable product moisture ranged from 17.20 to 23.20 percent, averaging 19.65 percent. Test results are contained in Appendix C. Conclusions The fine coal slurry and dewatered fine coal product samples taken during the test period were representative of the fine coal slurry feed and the dewatered fine coal product produced by the Dewatering System. Somerset reported, and WEIR’s representative confirmed at the time of WEIR’s inspection, that samples were taken in accordance with WEIR’s sampling protocol. In WEIR’s opinion, Somerset’s Dewatering System effectively dewatered Shade Creek’s fine coal slurry during the test period and produced a significant quantity of dewatered fine coal saleable product. The Dewatering System effectively reduced the moisture content of the fine coal slurry from an average of 70.10 percent to 19.65 percent for the fine coal saleable product, and was successful in dewatering and recovering fine coal from all coal seams processed without discernable difference. Somerset reported that the Dewatering System produced approximately 7,500 tons of saleable fine coal product during the test period. The dewatered coal fines were of such quality, and moisture content, that PBS was able to blend the dewatered fine coal with Shade Creek’s clean coal for shipments to customers. PBS reported that after using the clarified water from the Dewatering System in Shade Creek’s preparation plant circuits, PBS noticed an increase in capacity of Shade Creek’s fine coal processing circuits, likely the result of the processed water containing less suspended solids. WEIR appreciates the opportunity to provide this service to BSL and looks forward to working with BSL in the future. Sincerely, Weir International, Inc. Dennis N. Kostic Rick W. Thomas President and CEO Senior Vice President Attachments cc: T.E. Blandford J.D. Addison

WEIR

Page 8: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

APPENDICES

WEIR

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Evaluation of Somerset Coal International Inc.’s Solid Bowl Decanter Centrifuge Prepared for BSL Capital

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August 20, 2014

APPENDIX A

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June 4, 2014 Project No. 5820.3 Email: [email protected] Mr. Todd Eisenbud BSL Capital 667 Madison Avenue New York, New York 10065 Reference: Coal Sampling Protocol, Fine Coal Dewatering System Performance Test Dear Mr. Eisenbud: Weir International, Inc. (WEIR) was retained by BSL Capital, Inc. to develop a sampling protocol to determine the effectiveness of proprietary dewatering technology (Dewatering System) that will be adapted to, or integrated with, the fine coal dewatering circuit at Somerset Coal International’s Preparation Plant (Somerset Plant) located near Somerset, Pennsylvania. Coal Sampling Protocol The Dewatering System will be used to further reduce the moisture content of the fine coal, subsequent to the fine coal initially being dewatered in the preparation plant’s fine coal circuit using a screenbowl centrifuge. The fine coal product from the screenbowl centrifuge will be directed to the Dewatering System for further moisture reduction. The fine coal product feeding the Dewatering System will be sampled manually. To obtain a representative sample of the fine coal product feeding the Dewatering System, a splitter, valves and piping will need to be installed to divert a portion of the fine coal product stream to a

Executive Towers West I1431 Opus Place, Suite 210

Downers Grove, Illinois 60515USA

Tel: 630-968-5400

Fax: 630-968-5401

[email protected]

Mining, Geology and Energy Consultants Weir International, Inc.

WEIR

Executive Towers West I1431 Opus Place, Suite 210

Downers Grove, Illinois 60515USA

Tel: 630-968-5400

Fax: 630-968-5401

[email protected]

Mining, Geology and Energy Consultants Weir International, Inc.

WEIR

Appendix A

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Mr. Todd Eisenbud June 4, 2014 Page 2 of 3

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containment structure or container. The splitter will be installed in the center of the pipe feeding the Dewatering System to separate, to the extent possible, the fine coal product stream into two identical streams (see Exhibit1). Based on discussions with Standard Laboratories, Inc. (Standard), located in Cressen, Pennsylvania, WEIR developed a sampling protocol for the fine coal product from the screenbowl centrifuge and from the Dewatering System as follows: Sampling to Dewatering System Sampling of the Fine Coal Feedstock to the Dewatering System will commence once the preparation plant has reached steady state operation, approximately two hours into each operating shift. An approximate one gallon sample will be taken of the Fine Coal Feedstock starting hour two of each operating shift and continuing each hour for the next five hours. Before each one gallon sample is captured, the pipe feeding the Dewatering System should be purged to ensure the feed pipe is free of solids build up. Each one gallon sample will be collected and subsequently combined with other collected samples into a five gallon bucket(s), sealed and marked “Fine Coal Feedstock,” with the date, and shift, of the sample affixed to the buckets. This procedure will be repeated on each preparation plant processing shift. Standard recommends a minimum sample of five gallons of Fine Coal Feedstock each day to insure that a representative sample is obtained. Sampling from Dewatering System The Fine Coal Product from the Dewatering System is expected to be a cake-like material, which will be manually sampled, at 30 minute intervals, during the operation of the Dewatering System. If the Fine Coal Product discharge is accessible, a shovel should be used to obtain a sample, weighing approximately one pound, from a cross-sectional cut of the product stream. If the Fine Coal Product discharge is not accessible and the product is diverted to ground storage, eight shovel samples will be taken of the stockpiled Fine Coal Product twice during each preparation plant processing shift. Shovel samples of the stockpiled product should be taken approximately six inches deep at a level that is approximately three feet above the bottom of the stockpile and around the circumference of the pile. Each shovel sample should weigh approximately two pounds. Depending on the size of the Fine Coal Product stockpile, it may be appropriate to sample the stockpile traversing from top to bottom and bottom to top around the circumference of the pile. The samples will be combined and placed into airtight containers, sealed and marked “Fine Coal Product”, with the date, and shift, of the sample affixed to the containers. The total weight of the composite samples from both shifts should be a minimum of 50 pounds.

WEIR

Appendix A

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Mr. Todd Eisenbud June 4, 2014 Page 3 of 3

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Depending on the Somerset Plant’s coal processing schedule, the Fine Coal Feedstock and Fine Coal Product composited samples will be collected at the end of the last preparation plant processing shift each day. The daily samples will be transported to, or picked up by, a third party laboratory for analysis. To insure that the performance analysis of the Dewatering System is statistically representative, sampling of the Fine Coal Feedstock and Fine Coal Product should be conducted for a period of four weeks. ASTM recommends, in accordance with General Purpose Sampling Procedures ASTM D2234, that a minimum of 35 sample increments be taken. Relative to the performance analysis of the Dewatering System, each preparation plant shift’s sample would represent one increment. In accordance with discussions with Standard, the laboratory selected to conduct the sampling analysis should weigh the Fine Coal Feedstock and remove the fine coal particles using a screen and/or filter press to determine percent solids in the slurry. The laboratory should combine the fine coal particles and obtain a representative sample to determine the moisture content (%) and calorific value (Btu/lb) of the Fine Coal Feedstock using ASTM approved methods. The Fine Coal Product should be sampled to determine percent moisture and Btu/lb. Results of the analysis of the Fine Coal Feedstock and Fine Coal Product samples are to be provided within 24 hours of the analysis of the daily samples. Based on discussions with Standard, the estimated cost to pick up, analyze and report the results of testing, on a daily basis, would be approximately $200 per day. Sampling facilities (piping and values), methods and intervals may need to be revised and/or modified to best fit the preparation plant’s processing circuits and/or operating schedule, once the Dewatering System is set-up at the Somerset Plant. Sincerely, Weir International, Inc. Dennis N. Kostic Rick W. Thomas President and CEO Senior Vice President Attachment cc: T.E. Blandford J. Addison

WEIR

Appendix A

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Appendix A

Page 14: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Evaluation of Somerset Coal International Inc.’s Solid Bowl Decanter Centrifuge Prepared for BSL Capital

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August 20, 2014

APPENDIX B

Page 15: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix B Somerset Coal International, Inc. Dewatering System

Photographs taken on July 30, 2014 Prepared for

BSL Capital, Inc. August 2014

Q:\PROJECTS\5820\FnlRpt082014\Appendix B .doc

August 20, 2014 B-1

Dewatering System mounted on a flat-bed trailer

Dewatering System PLC display screen

WEIR

Page 16: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix B Somerset Coal International, Inc. Dewatering System

Photographs taken on July 30, 2014 Prepared for

BSL Capital, Inc. August 2014

Q:\PROJECTS\5820\FnlRpt082014\Appendix B .doc

August 20, 2014 B-2

Dewatering System’s product conveyor

Dewatering System’s motors and hydraulic tank

WEIR

Page 17: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix B Somerset Coal International, Inc. Dewatering System

Photographs taken on July 30, 2014 Prepared for

BSL Capital, Inc. August 2014

Q:\PROJECTS\5820\FnlRpt082014\Appendix B .doc

August 20, 2014 B-3

Dewatering System’s slurry sample pipe, product discharge chute and conveyor

Dewatering System’s clarified water (returned to the preparation plant)

WEIR

Page 18: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix B Somerset Coal International, Inc. Dewatering System

Photographs taken on July 30, 2014 Prepared for

BSL Capital, Inc. August 2014

Q:\PROJECTS\5820\FnlRpt082014\Appendix B .doc

August 20, 2014 B-4

Dewatering System’s fine coal slurry and product samples

WEIR

Page 19: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Evaluation of Somerset Coal International Inc.’s Solid Bowl Decanter Centrifuge Prepared for BSL Capital

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August 20, 2014

APPENDIX C

Page 20: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 21: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 22: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 23: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 24: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 25: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 26: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 27: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 28: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 29: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 30: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 31: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 32: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 33: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 34: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 35: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 36: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 37: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 38: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 39: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 40: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 41: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 42: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 43: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 44: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 45: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 46: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 47: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 48: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 49: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 50: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 51: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 52: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 53: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 54: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 55: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 56: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 57: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 58: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 59: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 60: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 61: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 62: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 63: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 64: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 65: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

Appendix C

Page 66: WEIR Weir International, Inc. - Somerset Coal Report 8-31-14.pdf · WEIR observed the Dewatering System in operation at PBS Coal Inc.’s (PBS) Shade Creek Preparation Plant (Shade

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