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Date: September 30, 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 Waste Pile /Embankment Inspection <br />On September 29, 2014, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to <br />conduct the quarterly inspection of the coal waste pile /embankment. <br />The "clean- water" ditch located along the north side of the embankment had been re- built. <br />Topsoil and organic material had been removed and stockpiled at the top of the embankment <br />(see Pic. 1). These materials should be removed from the site and properly disposed of off -site. <br />The re- vegetation along the slope of the embankment has successfully limited the rill erosion <br />from storm events. <br />There were several piles of material on the top of the embankment waiting for placement (see <br />Pic. 2). This material should be spread regularly in lifts that do not exceed those specified in the <br />design. The placement of the material should be periodically tested to ensure that the required <br />density /compaction required in the design is being met. Trautner Geotech, LLC ran two Proctor <br />tests from samples taken at the site. The results of the tests are included with this report. <br />Trautner Geotech, LLC will be conducting periodic compaction testing for the embankment <br />material at least quarterly. Copies of the results will be provided with this inspection going <br />forward. <br />The face of the embankment showed no signs of instability or weakness. The waste pile has <br />been and continues to be constructed as specified in the design approved by the Division of <br />Minerals and Geology. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 rE }. r ; +'t ne 970.565.7704 <br />