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Stoner engineering & 5ur-veying <br />E=ngineering, Testing & Surveying <br />Date: June 24, 2014 <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 June 20, 2014, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to conduct the <br />quarterly inspection of the water quality features installed to prevent contaminated storm <br />water runoff from escaping the site in events smaller than the 100 -year 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 />The water quality features are generally in good condition and there are no significant items <br />that require attention at this time. <br />Please let me know if you have any additional questions or concerns in regards to the issues <br />that are discussed above or if the actual conditions differ from what I have stated above. <br />Sincerely, <br />Ryan M. Griglak, P.E. <br />Project Manager <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 stonerengineer @frontier.net 970.565.7704 <br />