This stream archive runs about 75 minutes and comes from the same night as Episode 10. "Derping" is the video's title, but the night's real work is digging. Basket, Kondrik, voodoobeard and Scoti_Garbidis spend most of it carving out the huge pit that will become Basket Station, the main hub of Basket's rail network. The opening card says "Stream Archive" and "Derping" with no episode number.
Back through the Nether
The stream opens in a minecart on a Nether rail line, with voodoobeard's nameplate showing in the tunnel ahead. Back in the overworld, Basket points the others to the station, where buttons on the wall dispense minecarts, then rides the double line with its red rail beds out to the dig.
One player gets a first look. "Whoa! Giant hole? What's this?" Basket's answer: "This is, uh, a Basket Station, eventually." Then: "Let me get the beacon going." The beacon goes in on the pit floor and gives everyone Haste II.
Seven blocks at a time
Basket explains the method. Each layer comes out in seven-block chunks: dig a two-high walkway, then look up and clear the five blocks above it. Everything mined goes into a hopper chain that runs down through every level to chests in the basement, and more chests line the edge of the pit. Basket fills in the small cave pockets along the way so the floor stays flat enough to walk without looking down.
The tools rotate as they wear out: Basket's Silk Pickaxe, Basket's Shovel and Basket's Fortune Pick all show up in the hotbar. At one point a pick hits zero durability and another player offers a spare. Asked what happens to all the stone, Basket thinks the floor "might be a checkerboard of like polished andesite and diorite."
The invisible digger
For a stretch Basket switches to the third-person view. The server is still on 1.9.0, and a bug in that version leaves the players invisible to each other. "It's really funny watching you dig," one player says, because the ground is "just disintegrating" with nobody there.
Around the 42 minute mark the group starts to thin out, and chat shows Scoti_Garbidis and Kondrik leaving the game. voodoobeard is still online, and Basket wants to finish the layer before calling it a night, so the digging goes on.
What the hole is for
Near the end Basket explains the plan to a viewer. Basket Station will be the main rail station, with a 16-destination chooser: hop in a minecart, and the station builds a little train, freight or passenger, and sends it out into the world. The pit holds the redstone and the rail carts, and a freight yard will go underground beneath it. Basket plans to dig all the way to bedrock, partly for spare blocks and partly because the final depth isn't settled. The chooser's buttons will sit side by side on one wall, with none of the gaps the smaller station uses to fit its dispensers.
A look at the Iron Farm
To wrap up, Basket walks out past town toward the Iron Farm, past a patch of burning netherrack nobody can explain. On the way they talk through the railroad: along the coast, looping around to the far side of the farm, with the actual station on its north side. At the farm's collection spot Basket opens a large chest full of iron ingots. The farm probably isn't running, since "it's not chunk loaded," and any overflow may end up in a pool of lava.
Back at the water, Basket checks on the Boat Pig, still sitting in its boat by the dock, and ends the stream there.