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Flows on Sage Creek range from intermittent to perennial, depending on location and precipitation patterns. At the Seneca IIW monitoring sites, Sage Creek can be classified as perennial during years at or above average precipitation,and intermittent in years below average. The numerous small drainages tributary to Dry Creek are ephemeral in nature. Hubberson Gulch, downstream of the mine site to its confluence with Dry Creek, is intermittent. Dry Creek, like Sage Creek, can be classified as perennial most years, and intermittent during years with below average precipitation. Both Sage Creek and Dry Creek confluence with the Yampa River near Hayden, Colorado. Water in Hubberson Gulch is a MgCa-SO4 type. Surface water total dissolved solids (TDS), averages 820 mg/l. The water is hard, and is characterized as slightly alkaline (average pH 8.1). It is suitable for livestock watering and irrigation of salt tolerant crops grown in well drained soils. Water quality in Sage Creek is a CaMg-HCO3 type. Samples from baseline monitoring points indicate the water is slightly alkaline with a pH ranging between 7.0 and 8.0. The water has a TDS level of less than 500 mg/l, and is characterized as very hard. It is suitable for livestock and irrigation; however, flow is generally inadequate for irrigation. Dry Creek water quality is categorized as brackish, since the TDS level averages greater than 1000 mg/1 (1048 mg/1) near its confluence with Hubberson Gulch. Water quality degrades further downstream. With an average pH of 8.3, the water is slightly alkaline. Hardness averages 796 mg/l, and is considered very hard. Information pertaining to water rights comprises Tab, 16 Protection of the_ydroloLic Balance, of the permit application. All water rights in the area of the operation are listed in Table 16-1, and approximate locations are mapped on Exhibit 16-1. Attachments 16-A and 16-B are water rights studies performed for Seneca Coal Company. There are three adjudicated water sources within the permit area. The Temple Pond No. 2 and the Temple well No. I were destroyed by mining. SPL executed an agreement with the water right owner(s) to replace these two sources by leaving Pond 006 as a permanent impoundment. The Frank Temple Stock Pond is an adjudicated water source also destroyed by mining of the north pit, and SP has arranged to leave Pond 005 as a permanent replacement water source. SPL has an augmentation plan approved by the Water Division 6 Water Court to replace any other sources which may be impacted, and to provide supplies when a call is placed on Dry Creek by senior water users. The plan also approved a well permit for the operation's Trout Creek Sandstone water supply well. Climate The average annual precipitation at the mine site is approximately 16 inches. The mean annual temperature is 42°F. The average maximum and minimum temperatures are 66°F and 17°F respectively. Regionally, wind directions run east to west following the Yampa River Valley. More localized wind patterns trend along the side valleys. Land Use The current and historic land uses of the area comprise grazing land for livestock and habitat for wildlife. Regional land use patterns are oriented in three relatively distinct bands. Irrigated cropland is closely associated with the floodplain of the Yampa River. To the south, non-irrigated crops are grown on the sloping upland surfaces. The area nearest the mining operation includes hilly and mountainous terrain, utilized primarily as rangeland for livestock grazing and wildlife habitat. Land use in the mine area is undeveloped rangeland, with a small area classified as industrial due to an oil well site. Page 7 of 37