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rights. The end of the year reservoir content will range depending on that year's <br />coal production and water availability in the river. <br />GCC Water Demands <br />The water right in the Decree provides water supply for the Mine primarily for dust control <br />inside the Mine and at the entrance but also domestic use for the Mine employees. The Decree <br />includes three sources of water. Huntington irrigation dry -up, diversion from the La Plata River <br />for storage, and well water. At this time, wells are not included as a source of water supply and <br />the Mine has no plans to utilize wells as a water source in the figure. All of the current sources <br />require a reservoir to store water for month-to-month and year-to-year usage. From the known <br />data of the Mine's usage to date, the existing water supplies in place are adequate to satisfy the <br />demand. <br />The Decree provides a water supply of up to 34.07 acre-feet per year. To achieve adequate water <br />supplies for a demand of maximum tonnage per year, and to meet recent regulatory water usage <br />requirements, a redundant and expansive water supply is being pursued to ensure the Mine's <br />total water supply is adequate during a wide range of hydrological conditions. In conjunction, the <br />existing underground 20 acre-foot reservoir is unavailable for use for storage due to unexpected <br />circumstances. A new storage facility is being pursued at this time. <br />The proposed redundantlexpanded water source and potential storage facility are described <br />below along with steps towards implementation. At this time, the proposed additional supplies <br />are accommodated within the existing and proposed augmentation plan. <br />Additional Huntington Irrigation Dry -Up <br />To provide additional water, GCC has made arrangements with Huntington Ranches, LLC's <br />(Huntington) using Class A shares in the Hay Gulch Ditch (HGD) to supply the additional water, <br />for the life of the Mine, through dry -up of an additional 43.5 acres. The change of irrigation <br />water to use at the Mine will be nearly identical to the conversion of the previous dry -up acreage <br />in the Decree. There will be a couple exceptions as described herein that the land has been <br />historically sprinkler irrigated, water has been provided through the Huntington lateral of the <br />HGD, and the land is further from HOD requiring analysis of lagged return flow. <br />Huntington Reservoir <br />To provide a new storage facility, Huntington proposed enlargement of an existing pond to <br />accommodate Huntington's needs as well as provide storage for the Mine's water supply. GCC <br />may store in the reservoir its First Lease Water, Second Lease Water, and/or any other water <br />rights in the Decree. A key component of utilizing the Decree and additional supplies fully is <br />having storage for usage month-to-month and year-to-year. The proposed Huntington Reservoir <br />(Reservoir) will have a volume of up to 30 acre-feet dependent upon numerous aspects of design <br />and construction. <br />Sit ps for Implementation <br />1. Secure a letter of intent to lease additional water from Huntington by September 1, 2015. <br />(Completed) <br />