2020-06-25_REVISION - C1981035 (11)

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SURFACE WATER INFORMATION The only significant surface water features within and adjacent to the project area are the Hay Gulch irrigation ditch that runs from northeast to southwest north side of County Road 120 within the project area. There are no plans to disturb this ditch, and it will be maintained during the course of mine operations. Water quality and flow data from the Hay Gulch irrigation ditch are contained in Appendix 4. There are no streams, lakes within the project area. There are two small stock ponds within the project area, both in T35N R12W, N.M.P.M. One is located Section 27, northeast quarter of the northeast quarter, and is owned by Schirard Colorado LTD. Partnership. Should mining occur in beneath this pond, GCC Energy commits to leaving sufficient pillars in place to protect the stability of the pond, keeping it outside of the projected angle-of-draw. Alternatively, written permission will be obtained from the surface landowner prior to retreat mining near this pond. The other pond is located on a lot in the Vista de Oro Subdivision owned by Robert 8v Manik Hovsepian, There are no plans to mine beneath, or within the possible angle-of-draw, of this pond. The adjacent Dunn Ranch owned by the Ute Mountain Tribe contains various stock ponds, identified from maps and aerial photography. These structures lie within the jurisdiction of OSMRE permit CO-0106. East Alkali Gulch is located to the northwest of the project area. Access to the project area from the existing King II underground workings will be achieved by constructing a "Low Cover Crossing" (LCC) beneath East Alkali Gulch. This LCC lies within OSMRE permit CO-0106 and is discussed extensively in the LBA Environmental Assessment (see Appendix 15). The surface drainages channels that were located within the bottom of the two arms of the drainage basin in the surface facilities area were incised discontinuous features. The original channels were filled to make way for King II mine surface facilities. Based on an investigation of their configurations prior to facility construction they did not regularly flow, had not flowed during the year prior to facility construction, and based on the vegetation stature and lack of flow related deposition, appeared not to have flowed in recent times (see Appendix 2(7) for U.S. Army Corps of Engineers: Section 404-No Permit Required Determination). Maps King II-007 A thru G provides information on surface water features of the project and adjacent area. GCC Energy, LLC King II Mine Section 2.04.7 Page 6 June 12, 2020 (PR-10)