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Exhibit 7l Hydrologic Chazacterization Soutli of the Divide Area and Monitoring Plan 13 <br />• <br />4.0 COMPREHENSIVE HYDROLOGIC MONITORING PLAN <br />4.1 Summary <br />MCC has implemented an extensive water quantity and water quality monitoring plan for streams, <br />springs, and ground water resources in the Minnesota Creek and the North Fork of the Gunnison drainage <br />areas that could be potentially affected by WEM mining operations. Strategically selected surface and <br />ground water monitoring sites provide pertinent data and trends with regard to changes in water quantity <br />and quality. This information allows MCC to determine what, if any, impacts are occurring to the mine <br />area water resources as a result of mining activity. The data collected during the hydrologic monitoring <br />process are analyzed on an annual basis and MCC reports the results of these analyses to the CDMG in <br />the Annual Hydrology Report. If significant water quality or quantity changes are noted during the <br />monitoring, MCC is obligated to report the changes immediately to the CDMG. MCC plans to expand <br />into new mine areas and consequently needs to periodically revise the existing hydrologic monitoring <br />plan to continue to provide adequate baseline and on-going monitoring data and to comply with <br />permitting requirements. The locations of the current and future hydrologic monitoring sites aze <br />discussed below and shown on Map 1. Monitoring of USFS surface water resources and the subsidence <br />• monitoring plan for the SOD is presented in Sections 2.04.7 (2) and 2.05.6 (6) on the PR-10 permit <br />document, respectively. <br />4.2 Hydrologic Monitoring Plan <br />The hydrologic monitoring plan for the WEM includes monitoring surface water resources, springs and <br />seeps, ground water resources, the underdrain, and pertinent mine water sites. Routine monitoring <br />includes collecting field water quality data (pH, electrical conductivity (EC), and temperature) and <br />collecting a sample for independent laboratory analysis annually. Flow or water level measurements are <br />collected three times per year. The three monitoring periods correspond with the rising limb period <br />between April 3`~ and May 13`s, the peak flow period between April 21~` and June 26~', and the low flow <br />period between July 10`s and October 8~' as shown on Table 5. The chemical analysis suite for the first <br />five years of sampling, including baseline sampling, is presented in Table 6 as well as field parameters <br />(pH, conductivity, temperature, and flow or water level). After sites have been monitored more that 5 <br />years, the analytical suite parameter list will be reduced to field parameters (pH, conductivity, <br />temperature, and flow or water level) and laboratory analysis for total suspended solids (TSS), total <br />dissolved solids (TDS), conductivity, pH, and iron (Fe [dissolved & total]). The North Fork monitoring <br />sites have an expanded analytical suite, because of on-going characterization of this river. The North <br /> <br />April 2006 77ydraGeq Ina <br />