CPE Rebuild Facility 10/20/11

CPE Cloud Peak Energy (CPE) is one of the safest producers of low sulfur, high quality, subbituminous coal in the United States. Headquartered in Gillette, Wyoming, CPE owns three Powder River Basin coal mines. Antelope and Cordero Rojo Mines are located in northeast Wyoming and the Spring Creek Mine is located in southeast Montana near Decker. With over 1,500 employees, the company works to create the most sustainable value from its resources and relationships and is widely recognized for exemplary performance in its safety and environmental programs. 1

2 Background In 2005, the old Rojo Mine maintenance facility, on Cordero Rojo Mine, was converted into a rebuild facility. The facility repairs haul truck beds, dragline buckets, shovel dippers, rigging and track dozer undercarriages and idlers. Repairs include bushing, cutting edge, and wear plate replacement, fatigue and crack repair, and machining and wear build-up. All of these require extensive manual welding in dynamic conditions. CONFIDENTIAL

3 Need for New Facility CONFIDENTIAL The current facility was designed for maintenance to the mine’s large equipment. Since it’s design, surface mine equipment has increased in size substantially. Also, the facility is running at full capacity with projections showing an increase in work demand. Both of these, along with the fact that the facility was not designed for extensive welding have justified the need for a new rebuild facility.

4 CONFIDENTIAL Truck Bed Bay These aren’t oompa loompas This haul truck bed can hold 240 tons of coal. The largest bed in the world is in operation at a surface mine in Wyoming and can hold 447 tons of coal. This bed only has 1 to 2 feet of clearance from the overhead door frame when pulling in and out of the bay.

5 CONFIDENTIAL Bucket and Dipper Bays The picture to the left is of a dragline bucket. This bucket holds 86 yards of dirt. The dragline is used to remove earth to expose the coal tract. The picture below is of a shovel dipper. This dipper holds 77 yards of material. Dippers are used to shovel dirt or coal into haul truck dump bodies. Weights of the buckets and dippers exceed current overhead crane capacities. The current method to position these in the shop is to roll them around in the dirt with a really large dozer until they are properly positioned. Then, the dozer pushes them into the shop and the crane lifts them one corner at a time to insert the stands.

6 Undercarriage, Rigging and Idler Bay CONFIDENTIAL The two photos on the left show undercarriage and idler repair bays. The top right picture is of rigging for draglines and buckets. This is the small equipment. Same thing, one’s just prettier.

Design Deliverables 7 CPE is looking for a complete facility and yard layout which should include the following: Production area Raw material storage Equipment storage Laydown yard Parking Offices Lunchroom First aid room Change rooms Restrooms Wash bay And anything I missed

Contact Person 8 Jon Larsen Health and Safety Representative Office Phone: Mobile Phone: SDSM&T IE Graduate May 2010 and Dr. Jensen’s favorite student. Go Ducks!!!