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OG CC GCC Energy, LLC <br />Telephone: 370.385.4528 6473 County Road 120 <br />Energy " as a V alue` Facsimile: 470.385.4638 Hesperus, CO 81326 <br />April 5, 2012 <br />State of Colorado <br />Division of Reclamation, Mining & Safety <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />Attn: Marcia Talvitie, Reclamation Specialist <br />Re: King II Mine <br />Pond Quarterly Inspection <br />l st Quarter 2012 <br />Ms. Talvitie: <br />RE : E I VEID <br />APR 0 9 2012 <br />Durarlgc Field OT c. <br />Clivi rr si( , , l of <br />An inspection of the sediment pond at the King II mine was performed on March 21, <br />2012 for the lst quarter of 2012. A small amount of flow was entering the pond from <br />culverts C6 & C7, but the bottom of the pond was nearly dry. The pond embankment, <br />in- slopes and spillway all appeared stable with no evidence of slumping, settling or <br />excessive erosion. All features appeared to be in place and functioning as designed. <br />Please call Tom Bird at (970) 385 -4528 x 5503 if you have any questions or comments. <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />