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HARRIS WATER ENGINEERING, INC. <br />954 EAST SECOND AVENUE <br />DURANGO, COLORADO 81301 <br />970-25.9-5322 <br />970-247-0587 fax <br />canie@durangowater.com <br />August 12, 2015 <br />Memorandum <br />To. Brian Kimmel <br />From: Carrie Lile, Consulting Water Engineer <br />Subject: OCC Energy Water Use: Current and Future <br />To date, Harris Water Engineering, Inc. has prepared multiple Supplement Reports to the <br />original "GCC Energy Mine Water Supply and Demand Report." The first report was prepared <br />on June 5, 2013 that described the water demand and supply for the OCC Energy — King H Mme <br />(Mine). There have been three further supplemental reports: August of 2013, January 10, 2014 <br />and September 3, 2014. This memo serves as an additional report describing the water use and <br />demand for the Mine. <br />Estimated Usage <br />Demand for an average production year of coal is described by water source below. Based on <br />past usage, the Mine on average uses 2.4 to 3.4 acre-feet per month while producing 66,000 to <br />95,000 tons of coal per month. The amount permitted by CDRMS permit is a maximum of <br />108,300 tons of coal per month. Water usage varies with air moisture content (i.e. more moisture <br />in the air leads to less need for de -watering inside and outside the Mine). Water Court Decree <br />07CW100 dated December 31, 2007 (Decree) provides for up to 36.04 acre-feet annually to be <br />used in conjunction with storage. <br />➢ Huntington dry up lands: The Decree provides for a consumptive use of 9 acres of <br />dry up land for use at the Mine. The consumptive use for this amount of land is <br />estimated to be 14.07 acre-feet (using the Blaney-Criddle Method). While the <br />majority of the diversion is used during the irrigation season at the Mine, any <br />excess would be stored in the reservoir. The dry up occurs from May through <br />September, which is about 2.8 acre-feet per month of use. <br />La Plata River diversions: The Decree allows for diversions from the La Plata <br />River when in priority during the winter months. The maximum diversion from <br />the river is 27.23 acre-feet (based on 80 gallons per minute for 77 days). This <br />water is stored in the reservoir for use. Outside of the irrigation season is when <br />the stored reservoir water is typically used. The total volume of direct runoff, <br />27.23 acre-feet, is either stored or used immediately. If the average use is 2.9 <br />acre-feet per month, a remaining 6.93 acre-feet of water is stored and available for <br />use at other times in the year. <br />➢ Reservoir: A storage facility, such as the underground reservoir, is key to <br />providing an adequate water supply to the Mine when utilizing existing water <br />