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Permit No. COG-850000 RECEIVED JUL d 17.0 Facdb ffo. COG8F"2 Page I a Colorado Discharge Permit System Regulations CERTIFICATION under GENERAL PERMIT FOR COAL MINING FACILITIES (SIC NO. 1222) Category 07, Sub-category S, General Permits, Current fee $7801year (CRS 25-8-502) This certification specifically authorizes GCC Energy LLC, to discharge from the King Coal Mine, and King II Coal Mine, as described below and in accordance with the General Permit for Coal Mining Facilities. All correspondence relative to this facility should reference the specific facility number, COG-850001. Permittee GCC Energy, LLC 4424 County Road 120 Hesperus, CO 81326 Facility Contact Dan Redetzke 970-385-4528 x18 Project Name, Activity and Location This facility is an underground coal mine with surface processing consisting of crushing and screening. Current production (as of January 2008) is 475,000 tons per year will maximum production is 800,000 tons per year. Discharges consist of surface runoff only. The King Coal Mine is located in NW '/4 Section 32, T35N, RI I W in La Plata County. The King II Coal Mine is located in the NW '/4 Section 36, T35N, R12W, also in La Plata County. Effluent Parameters Note that Hay Gulch diverts water out of the La Plata River, and eventually returns water to the La Plata River. As Hay Gulch is therefore not really a tributary to the La Plata, it will be considered as part of the main stem The discharge is to Hay Gulch, within Segment 01 of the La Plata River, Mancos River, McElino Creek and San Juan River Sub-basin, San Juan and Dolores River Basin, found in the Classifications and Numeric Standards for the San Juan and Dolores River Basin (Regulation No. 34; last update effective 7/1/07). Segment 01 is Undesignated, and is classified for the following beneficial uses: Aquatic Life, Class 1 Cold; Recreation Class P; Water Supply; and Agriculture. Limitations and Monitoring Re utrements for Outfalls 001, 002 and 003 tel? ?kAN,'I -General Permit Requirements Flow, MGD Report NA Report Discharge Evaluation pH, s.u.. N/A NA 6.5-9.0 Water Quality Standards Oil and Grease, mg/1 N/A NA 10 State Effluent Regulations Continuous / Instantaneous2 2 days / month 2 days / month - Federal Effluent Limitation Guidelines - Total Suspended Solids, mg/1 35 NA 70 Federal ELG 2 days / month Settleable Solids, ml/1 Report NA 0.5 Federal ELG 2 days / month Site Specific Limitations Total Dissolved Solids, M94 ¦ Report NA Report Salinity Regulations Quarterly a Total Recoverable Iron. uQA 1000 NA NA Water Quality Standards 2 days /month Recorder / In-situ 2 Grab Visual 3 Grab Grab Grab Grab 1- For a minor facility, as determined by the EPA NPDES Permit Rating Worksheet, all weekly monitoring requirements shall be changed to 2 days per month. 2 - If power is not available, flow may be measured on an instantaneous basis. Major facilities shall monitor flow weekly, minor facilities 2 days / month 3 - If a visual sheen is noticed, a grab sample must be taken and analyzed for oil and grease 4 - Quarterly monitoring shall be prescribed if the limitation is based upon discharge to the Colorado River Basin. If the limitation is based upon agricultural protection, the monitoring frequency shall be weekly. Applies to discharges in the Colorado River Basin •• This limitation will apply and will substitute for the 30-day average total iron limit based upon the ELG, when a total recoverable iron standard is applicable to the stream segment. ISSUED: JUNE 23 2008 EFFECTIVE: JULY 1, 2008 EXPIRES: JUNE 30.2013 001 Surface Runoff Sedimentation i /° 1J.6' IN t Iva- o.v-+ w V.JA JYL%-i ==ay ____ 002 Surface Runoff Sedimentation 37° 15.2' N / 108° 6.04 ` W 0.062 MG Hay Gulch 003 Surface Runoff Sedimentation 37° 14.78' N / 1080 7.84 ` W 0.57 MG Hay Gulch