2015-12-07_PERMIT FILE - M2014071

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DENVER WATER November 24, 2015 Michael Cunningham Division of Reclamation, Mining and Safety Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 R ,eE VED DEC 012015 DIVISION GN MINING AND SAFETY 01,-0/VD 7/ RE: Need for a Mined Land Reclamation Board Permit, Gross Reservoir Expansion Borrow Dear Mr. Cunningham: Denver Water is seeking a determination regarding the need for a Mined Land Reclamation Board Permit. Denver Water previously submitted an "Is it Mining" determination request last December 21, 2014 about a borrow quarry within the FERC Project Boundary, located on United States Forest Service lands, that would be used for the expansion of Gross Reservoir. Denver Water is also exploring the feasibility of an alternative borrow quarry location, referred to in this letter as the "alternative quarry". Denver Water seeks your determination on whether a Mined Land Reclamation Board Permit would be required for the alternative quarry. Denver Water believes the alternative quarry would not require a permit based on the following considerations: the alternative quarry is located entirely on Denver Water property; the extracted material will also be used on Denver Water property for the sole purpose of constructing the Gross Reservoir Expansion Project; and the alternative quarry is within the expanded reservoir footprint and will be submerged by the new reservoir. This letter provides information regarding the expansion of Gross Reservoir and addresses the questions from the DRMS "Is It Mining" form. Project Background and Description Gross Reservoir is owned and operated by Denver Water for water supply storage. Denver Water generates power as an ancillary benefit to water supply operations at Gross Reservoir. The Federal Energy Regulatory Commission (FERC) authorizes the Gross Reservoir Hydroelectric Project under License No. 2035-006. The license authorizes operation and maintenance of the hydroelectric project, which includes the dam, reservoir, powerhouse, and all structures, fixtures, equipment and facilities used to operate or maintain the project. The project and the lands for the project are included by the FERC license "Project Boundary", including U.S. Forest Service Lands. Expansion of the dam, for purposes of increasing water supply storage requires an amendment to Denver Water's FERC license. The amended license would authorize the expanded and new facilities and construction associated with the project within the expanded Project Boundary. The Gross Dam Raise borrow quarry, which is the subject of this letter, is within the Project Boundary, on Denver Water property, and will be authorized and regulated as part of the amended FERC license. In addition, Denver Water is awaiting a 404 permit P411