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V. COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Louis Head <br />New Elk Coal Company, LLC <br />12250 Hwy 12 <br />Weston, CO 81019 <br />March 16, 2017 <br />Re: New Elk Mine (Permit No. C-1981-012) <br />Review of 2014 AHR, including historical hydrology data (2009 — 2013) <br />Dear Mr. Head: <br />The New Elk Mine 2014 AHR was reviewed for two general purposes: <br />• An overall assessment of the 2009 — 2013 water monitoring data provided in the <br />historical data summary tables (Appendix B) of the 2014 AHR. <br />• A more detailed assessment of the 2014 AHR. <br />2009 - 2013 Hydrology Data from 2014 AHR <br />Surface Water <br />Regarding water quantity, the data does not provide evidence that the hydrologic impacts of mining have <br />been more deleterious than the impacts predicted in the Permit Application Package (PAP). Only minor <br />impacts are expected on the Middle Fork of the Purgatoire River as it is a relatively large water body. <br />Impacts from underground mines on surface flows in larger water bodies have been found to be <br />insignificant, based on past Division experience. <br />Water quality data for the downstream surface water point (PRS -4 in Table B-2 of the 2014 AHR) was <br />compared to surface water quality regulations, Regulation No. 32, Classification and Numeric Standards <br />for Arkansas River Basin (Reg. 32). The comparison was made for parameters in the current monitoring <br />plan (Table 28 in the PAP). The relevant parameters and the Reg. 32 standards are as follows: <br />• pH-6.5to 9.0 <br />• Chloride — 250 mg/1(chronic) <br />• Sulfate — 250 mg/1 <br />• Iron (total recoverable) —1.0 mg/1 <br />• Iron (dissolved) — 0.3 mg/1 <br />• Manganese (dissolved) — 0.05 mg/l. <br />No exceedances were found for any of these parameters in the 2009 — 2013 data for PRS -4 <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director <br />