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GCCGCC Energy, LLC <br />Telephone: 970.385.4528 6473 County Road 120 <br />Energy "Safety as a Value" Facsimile: 970.385.4638 Hesperus, CO 81326 <br />July 3, 2014 <br />State of Colorado <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 -2273 <br />Attn: Marcia Talvitie, Reclamation Specialist <br />Re: King II Mine <br />Pond Quarterly Inspection <br />2nd Quarter 2014 <br />Dear Ms. Talvitie, <br />RECEIVED <br />JUL 18 2014 <br />DMSION OF RECLAMATION <br />MKWGAND SAFETY <br />An inspection of the pond at the King II mine was performed on June 4, 2014 for the <br />2nd quarter of 2014. The pond was dry. The pond embankment, in- slopes and <br />spillway all appeared stable with no evidence of slumping, settling or excessive <br />erosion. All features appeared to be in place and functioning as designed. <br />Please call Tom Bird at (970) <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />385 -4528 x 6503 if you have any questions or comments. <br />