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Brian Munson -2- September 22, 1981 Sheridan Enterprises, Inc, shall provide to the Division an analysis of the floor and interburden materials within the McClane Canyon Mine, either upon encountering mine inflows, or upon producing waste rock or coal processing wastes which must be disposed of in surface piles. In the case of encountering mine inflows, the applicant shall provide to the Division within 30 days an analysis of the inflow water ac- cording to parameters in Appendix B, Baseline Water Quality Monitoring, and an analysis of the floor and interburden material according to parameters in Appendix A, Baseline Overburden Chemical-Mineral Analysis. In the event that a disposal pile is required to dispose of waste rock or coal processing wastes, the applicant must provide the Division an analysis of the waste rock or coal processing wastes for those parameters in Appendix A as part of an amendment to the permit. Hydrologic Balance - Ground Water Monitoring The applicant has adequate monitoring wells within the alluvium of East Salt Creek to monitor the effects of mining on the quantity and quality of alluvial ground water. However, the applicant has not completed a year's baseline which includes monthly field measurements of ground water levels, pN, electro- conductivity, and temperature; and quarterly chemical analyses according to parameters in Appendix B, Baseline Water Quality Monitoring. The applicant has agreed to conduct future monitoring for parameters required by the Division, page 4-14a and Tables 4.2-13 and 4.2-14. The applicant has no monitoring well completed in strata overlying the under- ground mine workings. The absence of monitoring wells above mine workings is due to the inability of drill rigs to traverse the steep terrain without significant environmental damage. Previous holes drilled in the area of the portals have been dry to a depth in excess of 200 feet below the Cameo seam. Exploration drill holes a mile down dip to the North and Northeast of the present 5-year permit area have encountered water in both the Cameo seam and in perched aquifers (Figure 4.2-3). The present mine is a dry mine, indicating that the Cameo seam and its associated roof and floor strata are not saturated in the area of the mine and the mine area is not a recharge area for these strata. Faults and fractures within other underground mines in Colorado are the major sources of mine inflows. Sheridan Enterprises, Inc. do expect to encounter faults during mining since they are mining within a grobin structure. The exact location and hydrologic characteristics of these faults are presently unknown. Given the above site-specifics, the Division has agreed to allow the applicant to monitor the effects of mining on ground water quality and quantity by monitoring and mapping mine inflows. The following stipulation is to specify the data required, the formate of data submitted, and the schedule for reporting the information to the Division: The applicant shall submit to the Division an annual report of inflows, discharges and consumption of water within the mine. This report is to include a mine workings map showing the location and quantity of inflows; a table keyed to the mine map which shall contain the source (i.e. fault, fractures, etc.), quantity, duration, and quality (i.e. pH, electro-conductivity and temperature) of aII inflows; a table containing records of water discharged from the mine, consumed in the mine and imported for use within the mine; a discussion of the water balance with- in the mine; and finally, a projection of hydrologic impacts of mining in the upcoming year.