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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />31 December 2014 <br />Tom Bird, Manager of Coal Services <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />Re: King Coal Mine (Permit No. C- 1981 -035) <br />Review of 3 "d Quarter 2014 Pond Inspection Report — King I <br />Dear Mr. Bird: <br />The Division has received and reviewed GCC's 3rd Quarter 2014 Pond Inspection Report for the <br />King Coal Mine (King I). Quarterly inspections are to be conducted in compliance with Rule <br />4.05.9(17): <br />(17) All impoundments shall be examined at least quarterly, by a qualified person designated by <br />the operator, for appearance of structural weakness and other hazardous conditions. The <br />reports shall be retained at or near the mine site, and a copy of the report shall be <br />submitted to the Division on a quarterly basis, or other approved submittal frequency. <br />The King I quarterly report goes beyond what is required by 4.05.9(17) and incorporates aspects <br />of the requirements for Annual inspections, which are to be certified by a Professional Engineer. <br />The following paragraphs of 4.05.9 govern the Annual impoundment inspections. In addition, <br />the report documents the condition of the various ditches and culverts at the site. <br />(14) All impoundments shall be inspected by a qualified registered professional engineer or <br />other qualified professional specialist under the direction of a professional engineer. The <br />professional engineer or specialist shall be experienced in the construction of <br />impoundments. <br />(a) Such inspections shall be made regularly during construction, upon completion of <br />construction, and at least yearly until removal of the structure or release of the <br />performance bond. <br />(b) The qualified registered professional engineer shall, promptly after each inspection <br />required by 4.05.9(14), provide to the Division, a certified report that the <br />impoundment has been constructed and /or maintained as designed, and in accordance <br />with the approved plan and the applicable regulations. <br />(c) A copy of each certified report shall also be retained at or near the mine site. <br />-cod <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />