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Jam" toner engineering & Surveying <br />Engineering, Testing & Surveying <br />Date: December 15, 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 December 15, 2016, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to <br />conduct the quarterly inspection of the water quality features installed to prevent <br />contaminated storm water runoff from escaping the site in events smaller than the 100 -year <br />storm event. <br />There were approximately 8 -inches of water in the west pond and 14 -inches of water in the <br />east pond (see Pic. 1) at the time of the inspection. Exact depths were difficult to determine <br />due to the presence of snow and ice. The ponds are both in generally good condition. The <br />required storage volume is adequate at this time based upon the sedimentation gages installed <br />in the ponds. The ponds should continue to be monitored after storm events to ensure that <br />excess sediment does not reduce the required storage capacity available for storm water <br />runoff. <br />The drainage ditches and pipes were generally in 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 Reclamation, Mining & Safety. <br />P.O. Box 1163 28 South Washington Street Cortez, Colorado 81321 <br />970.565.7483 stonerengneer@frontier.net 970.565.7704 <br />