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GCC <br />Energy <br />"Safety as a Value" <br />Loretta Pineda, Director <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />RE: Notice of Violation No. CV- 2012 -003 <br />Permit No. C- 1981 -035 <br />Request to Vacate <br />Dear Ms. Pineda: <br />GCC Energy, LLC (GCCE), the owner and operator of the King Coal Mine in La Plata County, <br />received the referenced NOV on April 11, 2012. This response is being submitted pursuant to Section <br />5.04.3(1) of the Rules and Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. <br />Pursuant to the Regulations, GCCE respectfully requests that you vacate the NOV and allow GCCE the <br />opportunity to work with the Division to resolve the underlying issues that resulted in its issuance. <br />The basis of the NOV is GCCE's use of coal mine waste (CMW) to backfill the King I Mine tipple <br />area highwall and benches, a practice that is included in the approved Reclamation Plan under Permit <br />No. C- 1981 -035. After receiving the NOV, GCCE quickly got in touch with Marcia Talvitie, the inspector <br />who issued the NOV, and her supervisor Sandy Brown to further understand why the NOV had been <br />issued and what needs to be done to resolve the matter. As a result of this discussion we now <br />understand that the approved Reclamation Plan is not sufficiently detailed to comply with the applicable <br />regulations pertaining to the disposition of CMW. <br />GCCE is willing to revise its Reclamation Plan and to submit the documentation necessary to <br />address the regulations governing the disposition of CMW. To this end, we are committed to providing a <br />technical assessment of the existing slope stability, under - drainage, and toxicity (the main components of <br />the CMW regulatory scheme) by July 31, 2012. We have already met with Ms. Talvitie and our technical <br />expert to begin discussions of what the technical assessment should include. <br />In conclusion, GCCE is a responsible mine operator without a history of violations or non- <br />compliance. We strive to comply with all permits and applicable regulations and are proud of our track <br />record in this regard. We were extremely disturbed to receive this NOV and are anxious to resolve this <br />matter cooperatively with DRMS. The issuance of an NOV is not required to garner GCCE's ooperation. <br />" 1 <br />Please contact me if you have any questions about this matter. <br />Cc: via e <br />Sandy Brown <br />Marcia Talvitie <br />Sincerel <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, Colorado 81326 <br />April 26, 2012 <br />Trent eterson <br />Vice - President, GCC Energy LLC <br />Telephone: (970)385 -4528 <br />Fax: (970)385 -4638 <br />LFP ��L <br />