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GCC GCC Energy, LLC <br />Ener Telephone 970.385.4528 6473 County Road 120 <br />"Safety as a Value" Facsimile 970.385.4638 Hesperus, CO 81326 <br />August 14, 2012 <br />State of Colorado <br />Division of Reclamation, Mining 8v Safety <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />Attn: Marcia Talvitie, Reclamation Specialist <br />Re: GCC Energy, LLC <br />King II Mine <br />CDRMS Permit # C -81 -035 <br />Technical Revision #20 - King I Portal Waste Bank (NOV CV -2012 -003) <br />Dear Ms. Talvitie: <br />This technical revision (TR -20) is being submitted to address the use of coal mine <br />waste (CMW) from the King II mine as highwall backfill at the King I mine portal bench <br />area. This submission fulfills the requirements of the Extension of Time for Abatement <br />issued on July 10, 2012 in the matter of NOV CV- 2012 -003. <br />The technical revision contains a geotechnical engineering report ( "Report ") prepared <br />by Trautner Geotech, Inc. of Durango, CO. The Report details the geotechnical <br />investigation of the highwall backfill at the King I mine site and presents a design for <br />removal of the CMW from both the highwall and the upper bench and recompaction of <br />this material to achieve a deposit that will comply with the regulations governing coal <br />mine waste banks. The design includes the placement of subsurface drains, <br />compaction testing and monitoring of material placement, long -term stability of the <br />deposit, final grading and placement of cover material for the development of vegetative <br />cover over the deposit. <br />Appendix C of the Report contains a report prepared by CDS Environmental Services <br />of Durango, CO. This report details analyses of the CMW for its suitability for plant <br />growth and its potential for leaching compounds harmful to the environment. In <br />addition, this report provides recommendations for preparing the highwall backfill to <br />support reclamation vegetation. <br />Please find attached an application form for a revision to a coal mining and <br />reclamation permit, revised permit pages 2.03.5 page 1, 2.04.5 page 4 and Table of <br />Contents page iii), a copy of the complete Trautner Geotech report to be included as <br />Appendix 10(4) of the permit and a proposed public notice for publication in the <br />Durango Herald newspaper. <br />