2014-10-10_PERMIT FILE - C1996083 (4)

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Application of Bowie Resources, LLC Application for Conditional Wafer Right and for Conditional Appropriative Right of Exchange Page 2 3. Legal Description of the Points of Diversion: The Bowie Spruce Stomp Diversion will be located at one or more points to be determined along West Fork Terror Creek generally within portions of Section 36, Township 12 South, Range 92 West of the 6th P.M., Section 1, Township 13 South, Range 92 West of the 6th P.M., Sections 5 and 6, Township 13 South, Range 91 West of the 6th P.M., and Sections 31 and 32, Township 12 South, Range 91 West of the 6th P.M., more specifically described as occurring within a reach of the West Fork Terror Creek from an upstream point of diversion located in the NW '/ of the SW '/4 of Section 36, Township 12 South, Range 92 West of the 6t' P.M. at a point approximately 1,790 feet from the south section line and 1,110 feet from the west section line of said Section 36 to a downstream point of diversion located in the SW %4 of the NE '/4 of Section 5, Township 13 South, Range 91 West of the 6th P.M. at a point approximately 2,590 feet from the north section line and 2,100 feet from the east section line of said Section 5. See Figure 1 attached. 4. Source: West Fork Terror Creek, tributary to Terror Creek, tributary to the North Fork of the Gunnison River, tributary to the Gunnison River. A. Date of Appropriation: June 17, 2014. B. How Appropriation was Initiated: By forming a specific plan and intent to appropriate the water, by constructing measuring stations in West Fork Terror Creek, and by other acts in furtherance of the appropriation of the water. C. Date Water Applied to Beneficial Use: Not applicable. 6. Amount Claimed: 1.0 c.f.s, conditional. 7. Uses: Industrial uses associated with subsurface mining in the Spruce Stomp Federal Lease Area. See Figure 1. 8. Remarks: Applicant submitted a federal competitive lease -by- application to the U.S. Department of Interior, Bureau of Land Management ( "BLM ") for an area known as the Spruce Stomp tract. See Figure 1. The Spruce Stomp tract contains approximately 1789 acres with federal minerals. The Spruce Stomp tract is immediately adjacent to the Applicant's existing coal leases where Applicant operates its Bowie No. 2 Mine. The Bowie No. 2 Mine is an underground longwall coal mine. Applicant plans to expand northward into the Spruce Stomp tract with new longwall panels planned from its existing operations to the south. The BLM and the U.S. Department of Agriculture, U.S. Forest Service have completed an Environmental Assessment of the Spruce Stomp Coal Lease by Application. On July 1, 2014, the BLM published a Notice of Competitive Coal Lease Sale in the Federal Register offering the Spruce Stomp tract for competitive lease by sealed bid. Sealed bids are due on or before July 30, 2014. Applicant has submitted