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SWCA <br />ENVIRONMENTAL CONSULTANTS <br />Sound Science. Creative Solutions. <br />To: Mr. Tom Bird <br />Durango Office <br />130 Rock Point Drive, Suite A <br />Durango, Colorado 81301 <br />Tel 970.385.8566 Fax 970.385.1938 <br />www.swca.com <br />Technical Memorandum <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, Colorado 81326 <br />From: Eilene Lyon, SWCA Environmental Consultants <br />Date: April 11, 2014 <br />Re: Natural Resources Survey of Nine Proposed Drill Holes on State Land for the <br />King II Mine, La Plata County, Colorado / SWCA Project No. 28487 <br />INTRODUCTION <br />GCC Energy, LLC (GCC), is proposing to conduct exploration core drilling for coal at nine locations on <br />state land managed by the Colorado State Land Trust within the State Permit Boundary for the existing <br />King II Mine. The overall project area is located approximately 9 km (5.5 miles) southwest of Hesperus, <br />Colorado, in La Plata County (Figure 1). All of the proposed drill holes would be accessed via existing <br />two -track roads. No ground - disturbing activity is planned or required for use of these existing roads. The <br />survey area around each drill hole is 91 x 91 m (300 x 300 feet [2.07 acres]) centered on each drill hole, <br />with the exception of the CO -14 -01 and CO -14 -07 holes, adjacent to land owned by the Ute Mountain <br />Ute Tribe At CO -14 -01 and CO- 14 -07, the survey area was thus shifted east to keep it within state land <br />boundaries. The surveys are required by the Colorado Department of Reclamation, Mining, and Safety <br />(CODRMS) in order for GCC to obtain approval for the exploration program. The drill holes are located <br />in the U.S. Geological Survey Durango West, Colorado 7.5- minute quadrangle map. <br />GCC selected SWCA Environmental Consultants (SWCA) to conduct natural resource surveys of the drill <br />hole locations to demonstrate compliance with the requirements of the CODRMS. The objectives of this <br />technical memorandum are to 1) describe vegetation communities in the project areas, 2) evaluate habitat <br />suitability for both federal and state listed special status species, and 3) conduct an assessment for <br />potential jurisdictional water of the U.S. in the proposed project areas to determine if Clean Water Act <br />Section 404/401 permit compliance is necessary. <br />King II Appendix 8(5) <br />