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,5oner F ngineering & Surveying <br />Engineering, Testing & Surveying <br />Date: June 24, 2016 <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 June 23, 2016, Ryan Griglak, P.E. visited the GCC Energy, LLC Icing 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 100 -year storm event. <br />There was no water in the west pond and 5 -inches of water in the east pond (see Pic. 1) at the <br />time of the inspection. The ponds are both in generally good condition. The required storage <br />volume is adequate at this time based upon the sedimentation gages installed in the ponds. <br />The ponds should continue to be monitored after storm events to ensure that excess sediment <br />does not reduce the required storage capacity available for storm water runoff. <br />The drainage ditches and pipes were generally good condition (see Pics 2 & 3). All pipes, <br />ditches and sediment traps should be inspected and repaired as necessary, especially after <br />storm events. <br />The drainage for the overall site is functioning well and is generally in good shape. There were <br />no specific items noted during the inspection which required attention. The drainage features <br />have been constructed and are operating as stated in the drainage plan submitted to the <br />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 />