2017-08-16_PERMIT FILE - C2010089A (3)

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In this plan for augmentation, NHN will use the following alternative water sources to mitigate any ground or surface water rights impacts. NHN owns 115 shares of the Colorado Cooperative Ditch Company ("CCC Ditch"). CCC Ditch owns water rights that are senior to water rights that may be injured in part during dry periods by mining activities. NHN changed 27 shares of the CCC Ditch for augmentation use in a previous decree (Decree in Case No. 88CW55, Water Division No. 4, dated April 2, 1990). These 27 shares represent up to 2.205 cfs direct flow from the CCC Ditch. By that Decree, these 27 shares allow NHN use of up to 97.8 acre-feet of senior water from the CCC Ditch to augment out -of -priority depletions. NHN has the ability to change additional shares of CCC Ditch to augment its future uses. NHN's water rights engineering consultant has determined that augmentation during the non - irrigation season will not be required as local water users do not irrigate during this time. Off season ditch runs for filling cisterns and stock ponds will continue unabated through the HDPE pipeline that will be in place to divert the 2nd Park Lateral irrigation flow. NHN will have direct flow, storage water and groundwater rights to meet its water demands in non -irrigation months. In conclusion, existing water court decrees together with the determinations of the professional water engineering consultant, ensure that NHN has adequate water rights for the NHN Mine. Irrigation The NHN Permit area has (since about 1910) and is currently serviced by an extensive man-made irrigation system. The water, primarily used for flood irrigation, is diverted from the San Miguel River approximately 15 miles east of the New Horizon North Mine by the Colorado Cooperative Ditch Company. The irrigation ditches transect drainage basins and commonly run along the basin divides (see Map 2.04.7-1 for location of main irrigation ditch). The main irrigation ditches have a network of feeder ditches running from them for irrigating more distant fields. These ditches are a source of ground water recharge, causing ground water mounding in the shallow ground water bedrock system. The effects of seasonal water mounding near the NHN permit area are apparent from monitor well water levels and hydrographs (see Appendix 2.04.7-1 of Section 2.04.7). Perennial flow occurs in Tuttle Draw and Coal Creek Canyon tributaries as a result of ground water discharge and return flow from the irrigation of the upland area. Site inspections confirm that water used for irrigation is obtained from the San Miguel River and no flood irrigation water is obtained from Tuttle Draw or Meehan Draw. In regard to the agricultural water quality standards, the San Miguel River water delivered by the irrigation ditches is more suitable for irrigation purposes than the waters in the Tuttle Draw or Coal Creek Canyon tributaries. The agricultural suitability (National Academy of Sciences. 1972. Water Quality Criteria 1972: National Academy of Engineering, Washington, D.C. p. 335) of surface water in the permit area falls within the category of water that can only be used for salt tolerant plants on permeable soils with careful management practices (TDS from 2,000 to 5,000 mg/1). Using the same classification system, water supplied by the 2nd Park Lateral irrigation Section 2.05.6(3) Page 9 April 2016 (PR -01)