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® RESOURCE <br />HYDROGEOLOGIC <br />V SERVICES <br />HYDROLOGIC MONITORING DATA COLLECTION <br />The water quality laboratory analytical suite was expanded in 2016, beginning with Quarter 1 (March) <br />monitoring. The purpose of the expanded analytical suite was to collect water quality data in line with <br />the CDRMS "Guidelines for the Collection of Baseline Water Quality and Overburden Geochemistry <br />Data" (1984), which were adopted in TR -26. This baseline data collection period (beginning in March <br />2016) is intended to characterize the pre -mining environmental conditions in order to shape the long- <br />term monitoring plan appropriately to evaluate potential mining effects on the hydrologic system. As <br />such, this is a one-year, four -quarter period to evaluate seasonal changes that may occur over a typical <br />year. The King II Mine began general operations in 2006, with hydrologic monitoring occurring at the <br />four locations noted in the previous section as continued in 2016. These four locations were monitored <br />for a CDRMS-approved list of field and laboratory parameters on the standard quarterly basis and GCC <br />was in compliance with CDRMS Permit C-1981-035. The original list of water quality analytical <br />parameters is provided as Table 1 and GCC has conducted hydrologic monitoring of the Hay Gulch <br />Alluvium and the Hay Gulch Irrigation Ditch during the entire period of operations at King II. To better <br />characterize and distinguish surface water, groundwater and springs/seeps, the baseline parameter list <br />was updated to address these three respective groups, although the differences are minimal and are <br />based on accepted environmental monitoring standards. These lists are presented as Tables 2, 3 and <br />4, respectively. When reviewing the parameter lists, it is important to note the red highlighted <br />parameters, which were added to the previous compliance list as part of the one-year baseline period <br />for these monitoring sites. It should also be noted that these parameter lists are expected to be the <br />future one-year baseline hydrologic monitoring parameter lists for any new monitoring locations <br />including surface water, wells and springs or seeps that may be identified or installed. This allows <br />ready comparison to established monitoring sites and proper adaptation to the existing hydrologic <br />monitoring program. <br />In addition to an expansion of the analyte list for water quality samples collected during each monitoring <br />event, the frequency of field parameter monitoring in 2016 was increased from quarterly to monthly <br />beginning in March, also following the CDRMS "Guidelines for the Collection of Baseline Water Quality <br />and Overburden Geochemistry Data" (1984). The incorporation of a monthly field parameter monitoring <br />schedule is intended to more fully characterize any potential seasonal variation in the hydrologic <br />system. The specific field parameters monitored during each event are given in Tables 2, 3, and 4. <br />Other notable updates to the GCC hydrologic monitoring program in 2016 include a modified sampling <br />methodology at the Wiltse Well and Well #1 Upgradient. The Wiltse Well was the King I Mine water <br />supply well for many years. The well is completed as a 48" well with corrugated steel casing to 14 foot <br />depth in the Hay Gulch Alluvium. This well was sampled with a standard groundwater bailer in the <br />years following the decommissioning of the King I Mine, after regular water production by the high- <br />capacity dedicated electric submersible pump was no longer necessary. In order to ensure full casing <br />storage evacuation during sampling, the dedicated submersible pump and related piping and fittings <br />were inspected and tested. In March 2016, the dedicated submersible pump was put back into service <br />GCC ENERGY, LLC <br />2016 ANNUAL HYDROLOGY REPORT <br />4 <br />