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2305 FEL, Section b, T7S, R102W, and was drilled to 5,600'. These dry holes, the lack of a closed <br />structure, and the structural location of the Permit Area make oil and gas production in the Permit <br />Area extremely unlikely. <br />There will be virtually no impact on the groundwater resources as the Cameo and Carbonera <br />Seams are not water bearing within the mine plan area which is to be disturbed by this operation. <br />The mine is located well above the alluvial valley fills and no direct disturbance of the alluvial <br />valley fills and no direct disturbance of the alluvial aquifer will occur during the actual mining <br />operation. Information included elsewhere throughout this application shows that mining during <br />this permit term will not extend to a point where a potential for impact will be realized. Monitoring <br />wells have been established in the alluvium of East Salt Creek to cortfrrm this poirti. Groundwater <br />resources are discussed in detail in Section 2.3.3, and 4.4 through 4.4.4. <br />Impacts to surface water within the permit and adjacent areas due to the surface effects of this <br />underground mining operation will be controlled to insure compliance with ail state and federal <br />standards relative to water quality. These controls are addressed in Section 2.3.1, 2.3.2, 2.3.4, and <br />2.3.5. <br />2.1.8 Existing Underground Mines <br />Historically, there have been small coal mining operations in the Douglas Pass area as long as <br />can be ascertained from opened coal seam outcrops, derelict mining structures and small refuse <br />sites. One such site exists in the north branch of Munger Canyon and is associated with the fee coal <br />property that will be part of the McClane Canyon Mine. <br /> <br />M~ Page 2.1 - S 10-12-00 <br />