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Report on GCC Energy Coal Transport Options <br />It is uncertain what the likely best option is given the information available. GCC Energy will <br />tend to select an option that is lowest in capital investment and addresses safety but may commit <br />to maintenance work that can be expensed and phased to match their planned use. This would <br />lower their risk. Local citizens impacted by truck traffic will want the safest option which also <br />mitigates impacts from noise, dust, light, etc. Safety of transport may be the common <br />denominator that brings the parties together for the best solution. <br />Participation in the Process <br />The Environmental Assess process is designed for and requires input from agencies and the <br />public to be successful for all parties. Participation within the system by citizens who think they <br />are or will be impacted is important so that all alternatives can be evaluated and the most <br />appropriate alternative(s) selected. It is likely that the EA document, which is forthcoming, will <br />be changed to an EIS because there appear to be significant impacts resulting from the King II <br />Mine and its proposed lease modifications. It is important that the local citizens communicate <br />with GCC Energy and participate in the EVEIS process so that issues can be mitigated and the <br />lease modification issued to GCC Energy. Without the lease modification, GCC Energy King II <br />Mine life is very limited. <br />Please let me know any questions that you may have concerning our response to the scope items <br />above. The information presented above is subject to change and conclusions from this <br />information may also be different as a result of any changes. In this regard, please advise me of <br />any conditions or data which become available during the future that is different than described <br />above. Thank you for the opportunity to provide your client mining engineering services. <br />Sin rely, <br />1 <br />Eldon D. Strid, P. E. <br />MINE ENGINEERS, INC. 8 December 15, 2015 <br />