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9. <br />Date: December 21, 2012 <br />To: Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />6473 County Road 120 <br />Hesperus, CO 81326 <br />(970) 385 -4528 <br />From: Ryan Griglak, P.E. <br />Project Manager <br />Stoner Engineering & Surveying <br />Re: King Coal I — Quarterly Water Quality Improvements Inspection <br />On December 21, 2012, Ryan Griglak, P.E. visited the GCC Energy, LLC King I Mine site to <br />conduct the quarterly inspection of the water quality features installed to prevent <br />contaminated storm water runoff from escaping the site in events smaller than the 100 -year <br />storm event. <br />The King I Mine consists of two (2) storage ponds (East Pond and West Pond) to provide the <br />necessary storage to contain the 100 -year storm event. All "contaminated" runoff from the site <br />is routed into either the East or West ponds. Runoff is routed along the outside of the site via <br />channels. Recent snowfall accumulation made inspection of many of the drainage features <br />impossible. The reinstallation of sedimentation gages had been completed in both ponds (see <br />Pic. 1 and Pic. 2). <br />It was not possible to determine if the outlet pipe between the East and West Ponds had been <br />repaired due to the conditions (see Pic. 3). The outlet pipe at the northwest end of the East <br />Pond was unable to be inspected due to the depth of snow. <br />Material from the Coal Waste Pile appears to have been completely removed from the west <br />side of the site and trucked and spread to the top of the refuse pile located along the east side <br />of the site per the determination made by the Division of Mining, Reclamation & Safety (see Pic. <br />4). The exact conditions are unknown due to snow accumulation however; substantial changes <br />in the general topography are evident from the time of the previous inspection. <br />P.O. Box 1163 <br />970.565.7483 <br />28 South Washington Street Cortez, Colorado 81321 <br />970.565.7704 <br />