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the owners of the site for transporting livestock to and from the area. The surface <br />land owner has so requested by letter noted above. <br />Upon abandonment of the Bathhouse, the water wells will be transferred to <br />the landowners. The water well shown on Map King I -007, located in the meadow of <br />Hay Gulch off the permit area is the property of Mr. Wiltze who leases its use to GCC <br />Energy. GCC Energy has water rights at this well until September 1, 2012, with <br />renewal options there -after (See Appendix 2(5)). <br />The water impoundments (sediment ponds) are not intended as permanent <br />constructions on the mine site, but will remain intact until the site has been <br />successfully reclaimed. <br />The diversion channels and buried culvert pipe will be maintained during the <br />reclamation program until Phase II Bond release has been achieved, <br />Upon successful Phase II Bond release, permanent drainages will be installed <br />and the ponds reclaimed. <br />Unneeded power and telephone line poles and equipment have been removed. <br />The well pumps will require power. The surface owner has requested by letter, <br />noted above, that power remains. <br />The Upper Facilities Area (Coal Stockpile to Bath house) will be ripped and the <br />coaly waste will be transported to the refuse pile. <br />SEALING MINE OPENINGS AND DRILL HOLES <br />In accordance with the requirements of our mine plan, 211.41 (c) 30 CFR, the <br />portals (mine openings or entrances into the King I Mine) were back - filled with %" <br />road base and sealed with concrete plugs. Coal stockpile residue on the permit area <br />will be scraped from the surface as described earlier and transferred to the refuse <br />pile. This will limit acid - forming or toxic materials in the final plant growth medium <br />dispersion and re- vegetation. These four portals were each approximately 10 feet <br />wide by 8 feet high. After back - filling to a depth of 25 feet from the portal, the <br />mouths of the portals were caved to completely seal them. <br />Coal exploration drill hole N -16 and a vent hole in the mine plan area have <br />already been capped with concrete plugs and meet reclamation requirements. A dry <br />well hole next to the water tank has been filled. The active well on the permit area <br />(See Map King I -007) will remain open and in active use for future use by owners of <br />the property. This well is enclosed in a housing and collared. See Map King I -005 <br />for location(s) of any vent /air shafts or holes. <br />GCC Energy, LLC <br />Section 2.05.4 <br />Page 3 <br />King I Mine <br />August 1, 2012 <br />RN Z ,qwJ <br />09 - Mare 20.3 <br />