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West Elk Mrne • (i.e., projections are to The east of the mine workings). These fault zones do, however, project into the F Seam workings of the Hawks Nest Mine (east of the Sanborn Creek Mine) which neither encountered these faults zones nor experienced any significant groundwater inflows. MCC believes that the water-bearing BEM and 14HG fault systems are unique to West Elk Mine and, as a result, do not extend any significant distance away firm the pemut azea. As a result, the proposed storage of water within the Box Canyon Sealed Sumps is not expected to increase groundwater inflows within the abandoned downgradient mine workings primarily due to the low permeability of the coal and the lack of hydraulic connection between the mines via the fault systems. • In January 1997, MCC appropriated the nontributary groundwater fault inflows and sump storage areas. MCC adjudicated these rights by decree (Case Nos. 97CW242, 97CW243 and 97CW244) through the Division 4 Court system in 1999. • MCC obtained approval for the Lone Pine Gulch pipeline discharge point (Outfall #013) to dischazge mine water from the NW Panels sealed sump. The quality of the water within the sump was evaluated and found to be of sufficient quality so as not to require ,additional treatment prior to discharge to Lone Pine Gulch. • MCC constructed a 2,000 gpm pumping facility in Sylvester Gulch in August 2000 for mine water outflow waters. The facility was designed to allow for rapid expansion, including a treatment system if necessary. In short, the BEM Fault inflow in March 1996 and the 14HG Fault inflow in January 1997, prompted MCC to take many aggressive steps to improve mine inflow management. At the present time, seven southwest to northeast trending fault systems have been identified in the West Elk Mine permit area. More specifically, the faults generally trend N60E to N70E with dip angles of 70° to 85°. This orientation is parallel to subparallel to the dominant joint set at N58E to N64E. The tectonic faults are believed to have formed by activating the existing joint system to form the fault zones. Four of these fault systems have been encountered by previous mining. These include the unnamed fault at the bottom of the entry slopes in the B Seam, the BEM Fault, the 14HG Fault and the "Oliver" Fault that was encountered in the Oliver Mine near Sylvester Gulch. Three additional parallel fault systems (named the West Flat-Iron, Deep Creek and Gunnison) have been identified by drill holes, seismic or analytical techniques. Each is located approximately 2,000 feet apart and with dip angles greater than 70° to the northwest. Coal exploration drilling has not encountered fault zones or associated fault waters. The near vertical nature of the faults, the diminishing displacement of the faults as they approach the surface, the vertical aspect of coal exploration holes, and the inability to precisely pinpoint undrained faults makes interception with drilling difficult and unlikely. A single surface methane drainage well was drilled across a known fault zone using directional drilling methods. The hole successfully vented methane but did not encounter water. U 2.05-214 Revised November 2004 PR/0