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Peter Hays <br /> May 9, 2019 <br /> Page 4 <br /> BMS needs to monitor and better characterize the elevation and movement of <br /> groundwater during at least one year of operations at Empire Reservoir. This analysis <br /> and information is necessary to confirm that the proposed mining operations and <br /> reclamation can and will be done in a manner that will always be above the regional <br /> aquifer water table elevation, that groundwater and the local aquifer hydrology will not <br /> be impacted by the proposed mining operations and reclamation, that BMS can actually <br /> fully protect against disturbances to the prevailing hydrologic balance, and that the <br /> proposed mining operations and reclamation will not result in physical impact and <br /> injury to the District's and the Company's water rights and operations. <br /> Water Quality Impacts <br /> Many of Bijou's water users also receive potable water from the Morgan County <br /> Quality Water District ("MCQWD"). Bijou is aware of the concerns raised by MCQWD <br /> concerning impacts from the mining project to Hay Gulch and MCQWD's wells, and <br /> shares the concerns about contamination of sole source potable water due to mining <br /> and reclamation. <br /> Bijou also has concerns about water quality impacts to Empire Reservoir from the <br /> proposed mining and reclamation operations. Infiltration of mining process water into <br /> the alluvial aquifer in the area of the proposed mining operations would degrade water <br /> quality in the alluvium to the south and west of Empire Reservoir. In addition, the <br /> additional machinery that will be used during mining operations and substantial <br /> additional truck traffic will result in a greater risk of spills of hydrocarbons (oil, diesel <br /> fuel, etc.) that could impact water quality through leaching or mixture with stormwater <br /> runoff. Bijou believes the general hydraulic gradient in the area where mining is <br /> proposed is to the north and east. To date Bijou has not seen any specific evaluation of <br /> how mining operations and proposed reclamation activities could impact water quality <br /> in the Empire Inlet Canal and Empire Reservoir. If there are short or long-term water <br /> quality impacts from the project that contaminate water in Empire Reservoir, such <br /> impacts would also be passed on to the Bijou Canal and to the District's landowners <br /> and Company stockholders. Again, this outcome raises the potential for injury to <br /> legitimate interests. <br />