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,5toncr engineering & 5urve ing <br />Engineering, Testing & Surveying <br />Date: July 6, 2015 <br />To: Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />5473 County Road 120 <br />Hesperus, CO 81326 <br />(570) 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 June 29, 2015, Ryan Grglak, P.E. visited the GCC Energy, LLC King I Mine site to conduct the <br />quarterly inspection of the water quality features installed to prevent contaminated storm <br />water runoff from escaping the site in events smaller than the 1170 -year storm event. <br />There were approximately 6 -inches of water in the west pond (see Pic. 1) and 8 -inches of water <br />in the east pond at the time of the inspection. 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 summer <br />months, the ponds may need to have the excess sediment removed. <br />The drainage ditches and pipes were in generally good condition (see Pic. 2). The drop inlet on <br />Reach 7 noted in the previous report has been cleaned of debris and repaired to prevent <br />infiltration of sediment into the piping system (See Pic. 3). The sub -surface erosion/washout at <br />the corner of the waste haul road noted in the previous Inspection has been repaired (see Pic. <br />4). All ditches should be 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. There were <br />no items noted during the inspection which required attention. The drainage features have <br />been constructed and are operating as stated in the drainage plan submitted to the Division of <br />Minerals and Geology. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 stonerenaineer@frontier.net 970,565.7704 <br />