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1 <br />Stoner engineering &Surveying <br />Engineering, Testing & Surveying <br />Date: September 30, 2013 <br />To: Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />(970) 385 -4528 <br />From: Ryan Griglak, P.E. <br />Project Manager <br />Stoner Engineering & Surveying <br />Re: King Coal I — Quarterly Water Quality Improvements Inspection <br />On September 24, 2013, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to <br />conduct the quarterly inspection of the water quality features installed to prevent <br />contaminated storm water runoff from escaping the site in events smaller than the 100 -year <br />storm event. <br />The King I Mine consists of two (2) storage ponds (East Pond and West Pond) to provide the <br />necessary storage to contain the 100 -year storm event. All "contaminated" runoff from the site <br />is routed into either the East or West ponds. Runoff is routed along the outside of the site via <br />channels. <br />There have been several localized storms in the area in the past 30 days which have resulted in <br />significant rainfall amounts, in excess of one inch per hour. These storms typically result in <br />significant damage to onsite water quality measures when they occur in rapid succession. In <br />this case, most of the water quality measures were found to be in functioning and generally in <br />good condition. <br />The ditch located along the east side of the site was generally clear of debris but, there were a <br />few sections which require some grading work to reestablish the channel section. There is <br />roughly a seventy -five foot long section just south of the old wooden mining structures located <br />just off -site. There was no visible erosion or damage visible at this location however; it is <br />possible for a very limited portion of the onsite flows to escape the water quality measure <br />under certain circumstances. The location appeared to have been already marked for work by <br />GCC crews (see Pic. 1). The existing embankment should be increased roughly 12- inches at this <br />location to eliminate the potential for onsite runoff from bypassing the existing water quality <br />features. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 stonerengineer @frontier.net 970.565.7704 <br />