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jtoner engineering & Surveying <br />Engineering, Testing & Surveying <br />Date: March 23, 2015 <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 March 20, 2015, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to conduct <br />the quarterly inspection of the water quality features installed to prevent contaminated storm <br />water runoff from escaping the site in events smaller than the 100 -year storm event. <br />There were approximately 8- inches of water in the west pond and 10- inches of water in the <br />east pond at the time of the inspection (see Pic. 1). The ponds are both generally in good <br />condition. There has been some sediment build -up in the ponds but the required storage <br />volume is adequate at this time. In the event that there are frequent storm events during the <br />spring, the ponds may need to have the excess sediment removed. <br />The drainage ditches were in generally good condition. (See Pic. 2). The drop inlet on Reach 7 <br />should be cleaned of debris and repaired to prevent infiltration of sediment into the piping <br />system (See Pic. 3). There also appeared to be some sub - surface erosion /washout at the corner <br />of the waste haul road generally 160' north /northeast of the entrance pipe for Reach 3. A piece <br />of steel beam off the left side of the road marks the location. The noted disturbance could be <br />from runoff escaping the 18 " -CMP if the pipe sustained some form of damage. This should be <br />checked and any repairs, if necessary, should be made as soon as possible to prevent the <br />possibility of contaminated runoff from entering the clean water bypass. All ditches should be <br />inspected and repaired as necessary, especially after storm events. <br />The drainage for the overall site is functioning well and is generally in good shape. Other than <br />the items noted above, the drainage features have been constructed and are operating as <br />stated in the 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 stonerengineer @frontier.net 970.565.7704 <br />