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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural resources <br />02 July 2014 <br />Tom Bird <br />Manager of Coal Services <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />Re: King Coal Mine — Permit No. C- 1981 -035 <br />Technical Revision No. 22 (TR -22) — Exploration Drill Holes (9) <br />Second Adequacy Review <br />Dear Mr. Bird: <br />On June 26, 2014 GCC Energy, LLC (GCC) submitted a response to the Division's June 18, <br />2014 adequacy review of the TR -22 application. The package included a Proof of Publication <br />from The Durango Herald verifying the GCC's public notice was published in the May 10, 2014 <br />edition. The period for public comment therefore came to a close on May 20, 2014. No <br />comments or objections were received. <br />The Division's original June 18, 2014 adequacy comments area repeated below, together with <br />supplemental information regarding their resolution or need for additional response. <br />Adequacy Comments <br />2.03.5 — Compliance Information <br />1. The last paragraph, regarding abatement of CV- 2012 -003, was removed from Page 1. It <br />would be helpful to add a sentence indicating that the NOV was Terminated on <br />December 11, 2012. <br />2.03.5 Page 1 was revised as requested; this item is resolved <br />2.04.6 — Geology Description <br />2. A new subsection, "Exploration Core Drilling" has been added, beginning on Page 6. <br />The text does not address the question of whether any water - bearing strata may be <br />encountered in the 9 proposed drill holes. In the "Coal Geology" subsection of the <br />approved permit, on Page 5, the text refers to exploration drilling and analysis that was <br />conducted for King 11. The Division was not able to locate information on the location of <br />any previous exploration holes. Were they within the DRMS Permit Boundary? How <br />deep were they drilled? Was any water encountered? Please expand this section to <br />include a discussion of previous drilling programs in the King II area. <br />of -cow <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickentooper, Governor I Mike King, Executive Director I Virginia Brannon, Director I <br />x <br />