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Stoner E_ngineering & 5urve�ing <br />Engineering, Testing & Surveying <br />Date: July 6, 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 Waste Pile/Embankment Inspection <br />On June 29, 2015, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to conduct the <br />quarterly inspection of the coal waste pile/embankment. Mr. Griglak, P.E. has conducted <br />inspections for the placement of earthwork/embankment fill material for numerous <br />commercial, residential and municipal projects in which buildings, roadways and parking <br />facilities were installed over the placed materials. <br />The perimeter ditches located along the north and south sides of the property are in gond <br />condition (see Pic. 1). <br />The unsuitable material (debris) stored at the top of the pile has been removed since the <br />previous inspection (see Pic. 2). There has been limited placement of stockpiled material since <br />the previous inspection. This material should be spread regularly in lifts that do not exceed <br />those specified in the design. The placement of the material should be periodically tested to <br />ensure that the required density/compaction required in the design is being met. <br />The face of the embankment showed no signs of instability or weakness (see Pic. 3). All <br />drainage channels were clear of debris and no damage to the channel sections was observed, <br />The waste pile has been and continues to be constructed and maintained as specified in the <br />design approved by the Division of Minerals and Geology. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 r.net 970.565.7704 <br />