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6/29/2015 State.co.us Executive Branch Mail - June inspections at Yoast and Seneca II W Mines and Hayden Gulch Loadout <br />STATE, OF Hernandez - DNR AI sha <al DNRsha.hernandez@state.co.us> <br />COLORADO , Y Y <br />June inspections at Yoast and Seneca II W Mines and Hayden Gulch Loadout <br />-I message <br />Simmons - DNR, Leigh <leigh.Simmons@state.co.us> Mon, Jun 29, 2015 at 8:58 AM <br />To: scowman@peabodyenergy.com <br />Cc: Alysha Hernandez - DNR <alysha.hernandez@state.co.us>, Janet Binns - DNR <janet.binns@state.co.us> <br />Scott, <br />Attached are the reports from the inspection we carried out at Yoast (cl994082), Seneca II W (cl982057) and <br />Hayden Gulch (cl992081). <br />I also created a .mpk file which can be opened with ArcMap. It contains the three georefenced maps we used as <br />background maps to help us navigate the site as well as the point shapefile we collected whilst doing the <br />inspection. The .mpk file exceeds the 25MB attachment limit on my email account, so I have sent it to you <br />using Google drive - please let me know if you are unable to open it. <br />I talked to Mike about some of the issues that we discussed in your office regarding the termination of water <br />monitoring and here is my interpretation of that conversation: <br />Water monitoring <br />DRMS water monitoring requirements are not formally tied to phases of bond release, (although reductions in <br />water monitoring often happen to be associated with bond release applications, there is no requirement for this) <br />Rule 4.05.13(3)(b) discusses the water monitoring liability period. I have copied the text below and added color to <br />highlight some key points: <br />After disturbed areas have been regraded and stabilized according to this rule, and after cessation of use <br />of underground mine workings, the person who conducts surface or underground mining activities shall <br />continue to monitor surface water and ground water quality and quantity in accordance with the approved <br />plan. Data from this monitoring may be used to demonstrate that these qualities and quantities of runoff <br />without treatment are consistent with the requirements of 4.05; that the operation has <br />minimized disturbance to the hydrologic balance in the permit and adjacent areas; that the operation has <br />prevented material damage to the hydrologic balance outside the permit area; and that the water rights of <br />other users have been protected or replaced. Based on this demonstration, the operator may request <br />reduction or deletion of the monitoring program or control system. <br />This means that there is no rule requiring Seneca Coal Company to continue groundwater monitoring past the <br />point at which the above demonstration can be made. The same is true of surface water monitoring requirements <br />over and above those required by the NPDES permit. (My understanding is that the Water Quality Control <br />Division uses phase II bond release as an indication that discharge permit could be terminated). <br />Ponds <br />It looks as though some of the sediment ponds have already been permitted as permanent structures and have <br />been approved by the State Engineer's Office. <br />For Seneca II W (ponds 005, 006, 009, 015, 016 and 017) this was accomplished with TR77 and MR76, and the <br />relevant pages are to be found in Tab 20, Attachment 20-2 plus appendices. <br />For Yoast the situation is a little more complicated. Tab 20, Attachment 20-1 was updated with MR29 and states <br />that 4 sediment ponds and 2 stock ponds are to remain as permanent structures. Appendix 20-1.2 contains the <br />permanent pond demonstrations and associated approvals from the State Engineer's Office. It looks to me as <br />though ponds 13 and 14, and ST -1 are approved as Livestock Water Tanks, and pond 10 is approved as a Non - <br />Jurisdictional Impoundment. As far as I can tell, for the remainder: <br />• pond 11 is approved as permanent in principle, but a demonstration has not yet been made, and approval <br />from the State Engineer has not yet been granted <br />• pond 11A (a stock tank) is approved as permanent and a demonstration has been made but approval from <br />the Sate Engineer has not yet been granted <br />• pond 12 is not approved as permanent <br />https:Hm ai I .googl e.com/m ai I/u/0/?ui= 2&i k=e29129fcb5&view= pt&search= i nbox&th=14e3fd3896636673&si m l=14e3fd3896636673 1/2 <br />