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GCC GCC Energy, LLC <br />Telephone: 970.385.4528 6473 County Road 120 <br />Energy "Safety asa Value" Facsimile: 970.385.4638 Hesperus, CO 81326 <br />January 21, 2011 <br />State of Colorado <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203-2273 <br />Attn: Tom Kaldenbach, Reclamation Specialist <br />Re: King II Mine <br />Pond Quarterly Inspection <br />4th Quarter 2010 <br />Dear Mr. Kaldenbach, <br />An inspection of the pond at the King II mine was performed on October 6, 2010 for <br />the 4th quarter of 2010. The pond was dry. The pond embankment, in-slopes and <br />spillway all appeared stable with no evidence of slumping, settling or excessive <br />erosion. All features appeared to be in place and functioning as designed. <br />Please call Tom Bird at (970) 385-4528 x 6503 if you have any questions or comments. <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />.................................................................. <br />My review found the above-referenced report(s) ....................... <br />in compliance with the following CDRMS Regulations: <br /> OF COO <br />4.05.9(17) -Timely submittal of quarterly pond inspection report <br />o <br />. <br />4.05.9(17) - Qualified pond inspector <br />* <br /> <br />4.05.9(17) - Content of quarterly report (structural weakness, 1876 <br />other hazardous conditions) <br />I: <br />?/?' COLORADO <br />??` <br />?(?`. oivisioH oe <br />RECLAMATION <br />MINING <br />Tom Kaldenbach <br />' SAFETY <br />Environmental Protection Specialist Date: P r <br />I <br />DRMS Imaging C /f V 035 <br />Permit: <br />Class: Hydrology <br />Type: Sediment Pond Inspection ?j 77 \ <br />Name: Adequacy Memo /a F, Zr <br /> <br />From: DMG <br />To: Operator