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July 29, 2014 C- 1981 - 035 /King Coal Mine LDS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />N - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />NA - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of Colorado Dvision of Reclamation, Mining and Safety <br />(the Division). Wade Wymore of GCC Energy accompanied the inspection throughout. The weather was fine and <br />dry, but heavy rain had fallen within the preceding 24 hours. <br />GCC Energy employ approximately 150 people at the King Mine. All produced coal leaves the site by <br />truck, operated by one of two companies. Most of the coal is sent to a rail loadout at Gallup, New Mexico. At the <br />mine, coal is sorted by size into "lump" (for the Durango - Silverton train), "stoker" (smaller lumps, generally for <br />local domestic use) and "3 inch minus" (for use in cement plants). The vast majority of the coal produced at the <br />mine is used at cement plants. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />Development waste is transported by truck to the pile at the old King I Mine. There were no signs of <br />instability at the pile. Mr Wymore described plans to cut a new clean water diversion ditch, higher on the slope, to <br />give the pile room to grow larger. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The east clean water ditch had a great deal of vegetation growing in it; upstream, the ditch had been <br />compromised by the coal stockpile (see below). Maintenance of this ditch should be considered a matter of <br />priority in order to ensure compliance with the permit and the regulations. <br />Work was in progress to re- establish the berm defining the west clean water ditch, and to protect it using <br />large boulders. <br />The sediment pond at the south end of the mine site was inspected. The pond was holding a little water, <br />but was nowhere near the discharge level despite the earlier heavy rain. No problems were observed with the <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 15 <br />