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~~~-// ~~~~~,g~:~~~~ III III III III IIII III 999 SNOWMASS COAL COMPANY A~'it 2 7 1903 fAI~IED LAP1D RECLA~lATiO!~1 Colo. Den!. o! ~!atorzl Resa~rces Mine OIlice: P.O. BOx 980 Carbontlale, Colorado 81623 (3031 963-3440 Denver O!lice. Suite 2300 410 Seventeenth Street Denver, Colorado 80202 (303) 8251966 April 19, 1983 Mr. Robert Liddle Mined Land Reclamation Department of Natural Resources 1313 Sherman Street, Room 423 Denver, CO 80203-2273 RE: Snowmass Coal Companys Response to Water Rights Issue Dear Mr. Liddle: As you know, Snowmass Coal Company holds decrees of water developed in its Thompson Creek mines which permit the beneficial use of that water in the mining process. The decrees also provide that the water developed in the mines is considered to be tributary to the Colorado River, which is supported by current geologic information, as well as evidence on record before the Water Court when the decrees were granted. It is Snowmass Coal Companys in- tention to obtain an augmentation plan to replace water to the Colorado River. Snowmass Coal Company recognizes the fact that there may be a small amount of water flowing into the mines from Middle and North Thompson Creek. Snowmass Coal Company acknowledges the fact that it has an obligation to develop a plan for augmentation, or exchange or substitute supply, to insure that injury does not occur to the vested water rights of others on the Thompson Creeks. However, we must-emphasize that our decrees direct that the great bulk of water in the mines comes from and is decreed from the Colorado River itself, and any augmentation required for that water will occur outside of the Thompson Creek Drainage. Snowmass Coal Company's legal counsel has stated that the process required to develop a complete plan and have the same approved by the Water Court will require a considerable amount of time. At a minimum, Snowmass Coal Company will have to determine the amount of water entering the mine specifically from Thompson Creek Sources, if any, then that portion of the total mine in- flow must be allocated as to time to determine what portion is entering the mine during periods when there is a demand for water by a senior water right on Thompson Creek; then the location of that senior right or rights will have to be identified so that the appropriate source for augmentation or exchange can be identified. Finally, a court decree will have to be applied for and obtained approving the plan. In addition, a similar scenario will be followed concerning rights on the Colorado River mainstem for the bulk of the mine inflow.