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•GCC <br />July 20, 2011 <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />"Safety as a Value" <br />State of Colorado <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 -2273 <br />Attention: Tom Kaldenbach, Reclamation Specialist <br />Re: 2 Quarter 2011 Surface Subsidence Inspections <br />- —2nd QQuarte- 2011- Huntington- Ditch- - Inspections— <br />Telephone: 970.385.4528 <br />Facsimile: 970.385.4638 <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />Dear Mr. Kaldenbach: <br />Mike and Marc Crawford, of the Crawford Ranch property informed us that they <br />continue to monitor subsidericecracks on their property. No new cracks have been <br />located this quarter. They have informed us that all cracks on the Crawford Ranch <br />property are minor; they will inform us if they feel action is required. <br />No subsidence issues have been noticed in the mined out areas west of Pine Gulch on <br />the Huntington ranch property. Dan Huntington has not mentioned any subsidence <br />related issues on other areas of his property. <br />Please call Tom Bird at (970) 385 -4528 x 6503 if you have any questions or comments. <br />