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Page 2 of 3 <br />Varra- Coulson Resource Project <br />Second Adequacy Review <br />18. The Division of Water Resources requires the Applicant to conduct a field inspection of the <br />site and document the locations of all wells within 600 feet of the permit area prior to <br />approving a well permit. The Applicant's response is adequate. <br />19. The response is adequate. The Applicant will be required to protect all permitted <br />groundwater user rights and the prevailing hydrologic balance of the affected land and of <br />the surrounding area for the quantity and quality of water in the surface and groundwater <br />systems both during and after the mining operation and during reclamation. <br />20. Please reference the second adequacy review memo from Tim Cazier, P.E. dated February <br />6, 2014. <br />Plate 2 of the AWES, LLC report dated January 13, 2014 appears to indicate a mounding <br />effect of 10 -11 feet west of the lined Varra - Coulson mine and a shadowing effect of 1 -2 feet <br />east of the mine. Additionally, the mounding effects will potentially increase with the <br />discontinuation of dewatering at the Durham site and the proposed relocation of the <br />Greeley Ditch #3. Please provide mitigation measures to be implemented and trigger points <br />which would put mitigation measures into effect. The mitigation measures must include a <br />scenario for the installation of a French drain to direct groundwater around the clay liner <br />and restore groundwater levels to the historic elevation in area of groundwater mounding. <br />21. The Applicant committed to providing copies of the notification letters to well owners <br />within 600 feet of the mine as required by SEO well permit. The response is adequate. <br />6.4.12 Exhibit L - Reclamation Costs <br />22. The Division calculated the required financial warranty for the Varra- Coulson site at <br />$874,700.00 based on the information submitted by the Applicant. A copy of the bond <br />estimate is attached for review. <br />Items #23 and #24 - The responses are adequate. <br />6.4.19 Exhibit S — Permanent Man -made Structures <br />25. As required by the Division's Geotechnical Stability Exhibit policy, the Applicant must <br />attempt to obtain structure agreements with all property, including easement holders, and <br />structure owners within two hundred feet of the affected land. The Division will not <br />consider the engineering evaluation as part of the permit application until all appropriate <br />attempts to obtain agreements have been exhausted and documentation of the attempts <br />are provided to the Division. Please provide the Division with signed copies of the notarized <br />structure agreements with all owners of the structures and properties on and within 200 <br />feet of the affected area of the site. <br />