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Rule 2: Permits Lorencito Coal Company -Water Monitoring Plan • The monitoring plan for the LCC is established to verify the projections of the Probable Hydrologic Consequences. To verify these projections, this plan is established for the monitoring of the first five-year period. The plan designates sites that may be potentially impacted during this time period, along with the water quality constituents that potentially may also be impacted. The sites will be monitored during the initial five-year monitoring term. Locations of all wells, stations, springs and seeps, windmills and ponds are depicted on Map 2.04.7-1. The mine is now in final reclamation with Phase I bond release granted, effective March I I, 2005. As predicted and demonstrated by baseline and subsequent monitoring, the impacts of mining on the Hydrologic Balance have been minimal. The brevity of the active mining operation likely contributed to minimal mine related impacts. Future impacts, if any, are likely to be due to the dewatering of groundwater aquifers resulting from Coal Bed Methane (CBM) wells and the establishme~ of an extensive mad system to service and access these wells. Based on the above factors, monitoring frequency is being reduced to semi-annual field data and a~uat analytical data for all alluvial well and surface water monitoring sites. Individual sites are addressed more specifically within the text to follow. Surface Water • Surface water sites designated for monitoring are designated in Table 2.05.6-9. Monitoring of site PC-1 bas been terminated as the mine is now in final reclamation and mining related impacts never occurred within the area of influence affecting site PC-1. TABLE 2.05.6-9 LORENCITO CANYON MINE SURFACE WATER MONITORING SITES Site Reason for Monitorin Status JC-1 Surface Mine Active LC-1 Surface Mine/Loadout Active LC-2 Surface Mine Active PC-1 Surface Mine Terminated PRGTY-1 Permit Area Active PRGTY-2 Permit Area Active These sites would require monitoring for parameters as detemvned from initial baseline sampling. To determine these parameters the standards were compared to the values reported during the baseline period and those values which exceeded standards or were within 80% of the lowest standards value. The list of parameters in Table 2.05.6-10 is deemed adequate to monitor the surface stations. L~ 2.05-105 (Revised 4/17/07)