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BBA <br />water consultants <br />BISHOP- BROGDEN ASSOCIATES, INC. <br />February 14, 2012 <br />Ms. Megan Sullivan <br />Office of the State Engineer <br />1313 Sherman St, # 818 <br />Denver, CO 80203 <br />Michael A. Sayler <br />Christopher J. Sanchez <br />Jeffrey A Clark <br />Charles E Stanzione <br />Daniel O. Niemela <br />Laurel E Stadjuhar <br />Via Hand Delivery <br />RE: Well permit applications for Western Fuels- Colorado LLC - New Horizon Mine <br />Facilities <br />Dear Megan: <br />Please find attached three well permit applications that we are submitting on behalf of <br />Western Fuels- Colorado, LLC (Western Fuels) for two coal mine areas and one settling <br />pond, located in Division 4 in Montrose County. The well permit applications are for the <br />following facilities, which are included in the request for a Substitute Water Supply Plan <br />(SWSP), submitted by Mr. Wayne Schieldt of Water Resource Solutions, LLC. In <br />addition, these facilities are included in two pending water court cases, Division 4 Case <br />Nos. IOCW208 and 09CW171. Pending Case No. 09CW171 includes a claim for junior <br />water rights associated with these structures, and pending Case No. IOCW208 includes <br />an augmentation plan and exchange for these structures. The structures will operate in <br />accordance with the SWSP until these pending cases are entered with the Division 4 <br />water court. The well permit applications are specifically for the following facilities. <br />1. New Horizon 2 Mine <br />2. New Horizon North Mine <br />3. New Horizon Mine Pond No. 12 <br />Both the New Horizon 2 Mine and the New Horizon North Mine are strip coal mines. <br />The New Horizon 2 Mine is an existing mine which now operates under Case No. <br />88CW55 and DRMS permit number C- 1981 -008. The New Horizon North Mine is a <br />future mine which will operate under DRMS permit number C- 2010 -089. Both facilities <br />will operate under the pending water court cases after final decrees are entered. <br />Excavated trenches will be constructed across both mine areas to extract the coal. <br />Dewatering pumps will be installed at the low point of the trenches to maintain dry <br />mining conditions. Accordingly, the location of the dewatering pump locations will <br />