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(a)(iii) The narrative in Section 2.04.7(3) discusses the impact the mining operation <br />could have on the quantity of surface and ground water within the permit and <br />adjacent area. This impact is restricted to potential depletion of water from <br />the springs and ponds and surface streams. Limited extraction will be utilized <br />to protect Pond #1. The other ponds are either not within the projected angle <br />of draw or in an area where there is sufficient overburden to minimize the risk <br />of subsidence induced damage. No measures are proposed to protect the <br />springs because the likelihood of damage to the springs by the mine <br />operation is considered minuscule. <br />The applicant has alternative sources of water to mitigate the impact mining <br />may have on the quantity of surface and ground water within the permit and <br />adjacent area. The applicant controls 3,750 shares of Class I and 960 <br />shares of Class II stock in the Deer Trail Ditch Company and 782 shares of <br />Class II stock in the Fire Mountain Canal. The applicant also controls the <br />right to use 0.5 cfs decreed to the Deer Trail Ditch for power and mining <br />purposes with date of appropriation of February 15, 1907. <br />The Operator has two court approved augmentation plans (Case Numbers <br />99 CW 263 & 02 CW 77). Case 99 CD 263 addresses the High Value <br />Springs and Ponds located on USDA -FS Managed Lands. Additionally, the <br />augmentation plan addresses the BLM's instream flow rights in Terror Creek <br />and Hubbard Creek. Case 02 CW 77 addresses sediment storage rights. <br />The court cases are presented in Volume III, Tab 2, Water Augmentation. <br />The Operator has under lease 600 shares of the capital stock of the <br />Overland Ditch and Reservoir Company. The Lease gives the Operator <br />permission to use the Overland Shares by releasing the Overland Shares <br />into the Terror Creek drainage at any time deemed necessary. The term of <br />the Lease Agreement is for five (5) years, commencing on March 1, 2015 <br />and continuing until March 1, 2020, at which time the Operator has the <br />option to extend the Lease Agreement for an additional five (5) years, <br />unless terminated earlier as provided for in the Lease Agreement. The <br />Memorandum of Lease Agreement of Reservoir Company Shares is <br />provided in Volume III, Tab 1. <br />PR -14 2.05-109 06/14 <br />