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18 July 2014 <br />Tom Bird, 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-1981-038) <br />Review of Coal Mine Waste Bank Inspection Reports <br />rdnd <br />3Quarter 2012 to 2Quarter 2014 <br />Dear Mr. Bird: <br />The King Coal Mine operates a permitted Coal Mine Waste Bank (Refuse Pile), located at the <br />King I Mine surface facilities. Approved designs and construction requirements for the structure <br />are found in Section 2.05.3 Page 2,Section 2.05.4 Pages 4-5,Appendix 10(1),and Maps 014 and <br />015 of the King I volume of the permit. <br />Permanent disposalof Coal Mine Waste is addressed in Rules 4.09 and 4.10. Inspection <br />requirements for these structures are set forth in 4.09.1(11) and 4.10.2.(These portions of the <br />Rules areprovided at the end of this letter, for your reference.) <br />nd <br />Up to and including the 2Quarter of 2012, the Refuse Pile at King I was inspected as required <br />on a quarterly basis by a Registered Professional Engineer (P.E.). Site observations were <br />incorporated into the same Engineer’s inspection of the King I surface water drainage features. <br />rd <br />Beginning with the 3Quarter of 2012, a different P.E. has performed quarterly inspections of <br />the King I surface facilities. We find that the reports prepared by this Engineerdo not <br />adequately addressthe inspection requirements for Coal Mine Waste Banks. <br />rd <br />Beginning with the 3Quarter of 2014, please ensure that the Refuse Pile is inspected pursuant <br />to the requirements of Rules 4.09.1(11) and 4.10.2. Wepreferthatthis report be submitted <br />separately from the inspection of sediment control features. <br />Please contact me with any questions you may haveregarding this topic. <br />Best regards, <br />Marcia L. Talvitie, P.E. <br />Environmental Protection Specialist <br />1313 Sherman Street, Room 215, Denver, CO 80203P 303.866.3567 F 303.832.8106http://mining.state.co.us <br />John W. Hickenlooper, Governor | Mike King, Executive Director | Virginia Brannon, Director <br />