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GCC GCC Energy, LLC <br />Telephone: 970.385.4528 6473 County Road 120 <br />Energy "Safety as a Value" Facsimile- 970 385.4638 Hesperus, CO 81326 <br />July 23, 2013 <br />State of Colorado <br />Division of Reclamation, Mining 8s Safety RECEIVED <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 JUL 2 6 2013 <br />Attention: Marcia Talvitie, Reclamation Specialist OMSION OF RECLAMATION <br />MINING AND SAFETY <br />Re: 2nd Quarter 2013 Surface Subsidence Inspections <br />2nd Quarter 2013 Huntington Ditch Inspections <br />Ms. Talvitie: <br />On 6/18/2013, we performed and inspection of a known subsidence crack over an <br />area of the King I mine near the mouth of the old East Mains mining section. Pillars <br />were removed from the area in summer of 2007. The crack had "healed" almost <br />completely and no evidence of new cracks was encountered (See attached photo). <br />Mike and Marc Crawford, of the Crawford Ranch property informed us that they <br />continue to monitor subsidence cracks on their property. No new cracks have been <br />located this quarter. They have informed us that all cracks on the Crawford Ranch <br />property are minor; they will inform us if they feel action is required. <br />No subsidence issues have been noticed in the mined out areas west of Pine Gulch on <br />the Huntington ranch property. Dan Huntington has not mentioned any subsidence <br />related issues on other areas of his property. <br />Please call Tom Bird at (970) 385 -4528 x 6503 if you have any questions or comments. <br />Sincerely, <br />Tom Bird <br />Manager, Coal Services <br />GCC Energy, LLC <br />