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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />September 29, 2008 <br />GCC Energy, LLC <br />Attn: Trent Peterson <br />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />P.O. Box 2827 Ronald W. Cattany <br />Durango, CO 81302 Division Director <br />Natural Resource Trustee <br />RE: CV-2008-002; GCC Energy, LLC; The King I and II Mines; Permit Number <br />C-1981-035 <br />Dear Mr. Peterson: <br />I have enclosed the Settlement Agreement and the Settlement Agreement Justification for <br />the above cited Notice of Violation. This agreement is the result of the Assessment <br />Conference that was held at the Division of Reclamation, Mining and Safety's Denver <br />Office on September 18, 2008. If you agree with the penalties, please sign the Settlement <br />Agreement within ten days as instructed on the form. If you disagree with the Settlement <br />Agreement, do not sign it. The Division will fix the penalty pursuant to Rule 5.04.3(5) <br />and you may request a Board Hearing. <br />Please feel free to contact me at (303) 866-4926 if there are any questions. <br />Sincerely, <br />Anthony. Waldron <br />Conference Officer <br />CERTIFIED MAIL RECEIPT NO. 7003 1680 0000 6427 9988 <br />Enclosure(s) <br />Cc: Tom Kaldenbach-DRMS <br />Office of Office of <br />Mined Land Reclamation Denver Grand )unction • Durango Active and Inactive Mines