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Stoner T ngineerinQ' & Survecng <br />Engineering, Testing & Surveying <br />Date: December 16, 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 December 12, 2014, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to <br />conduct the quarterly inspection of the water quality features installed to prevent <br />contaminated storm water runoff from escaping the site in events smaller than the 100 -year <br />storm event. <br />There were approximately 4- inches of water in the west pond and 6- inches of water in the east <br />pond at the time of the inspection (see Pic. 1). The ponds are both generally in good condition. <br />There has been some sediment build -up in the ponds but the required storage volume is <br />adequate at this time. In the event that there are frequent storm events during the fall, the <br />ponds may need to have the excess sediment removed. <br />The drainage ditches, culverts and sediment traps were in generally good condition. (See Pic. <br />2). There was some debris (fallen tree) in the "clean water" ditch (north) that should be cleared <br />(See Pic. 3). All ditches should be inspected and repaired as necessary, especially after storm <br />events. <br />The drainage for the overall site is functioning well and is in good shape. Other than the items <br />noted above, the drainage features have been constructed and are operating as stated in the <br />drainage plan submitted to the Division of Minerals and Geology. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 stonerernQmeer@frontier.net 970.565.7704 <br />