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• GCC <br />July 20, 2011 <br />State of Colorado <br />Division of Reclamation, Mining 86 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 />2nd Quarter 2011 <br />Dear Mr. Kaldenbach, <br />"Safety as a Value" <br />Telephone: 970.385.4528 <br />Facsimile: 970.385.4638 <br />4 9 <br />- <br />:„A"\I\ 47:s <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />An inspection of the pond at the, King II mine was performed on May 25, 2011 for the <br />2nd quarter of 2011. The pond was damp but without standing water. The pond <br />embankment, in- slopes and spillway all appeared stable with no evidence of slumping, <br />settling or excessive erosion. All features appeared to be in place and functioning as <br />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 />