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Mr. Tom Schreiner May 25, 2005 Page 2 Comment: The Mined Land Reclamation Board (NLRB) Rules (Rules) require that disturbances to the prevailing hydrologic balance and to the quantity of water in surface and ground water systems (during the mining operation, after the mining operation and during reclamation) be minimized by compliance with applicable Colorado water laws and regulations governing injury to existing water rights (NLRB Rules, §3.1.6(1) (a)). If the permit is approved, Black Hawk requests the following conditions in the permit to ensure that no injury occurs to Black Hawk's water rights (NLRB Rules, §3.1.6(1)(a)): The applicant must identify the source(s) of water to be used for the mining operations (e.g., dust control, irrigation water). W ater pumped out of Clear Creek or North Cleaz Creek into a tanker truck without a valid, in priority, water right will injure Black Hawk's water rights. The NLRB Rules specifically require the applicant to identify the specific source(s) of water and the quantity to be obtained from each source in order to meet the project's anticipated water requirements (NLRB Rules, §6.4.7(4)). • The applicant must provide an estimate of all anticipated waterrequirements -including flow rates and annual volumes -for each phase of the project, including, but not limited to, development, mining, and reclamation (NLRB Rules, §6.4.7(3)). The application merely states that the daily water requirement is estimated to be 30,000 gallons per day (Application, page 17, Exhibit G -Water Information). It is unclear whether the 30,000 gpd estimate is • solely for dust control, or includes irrigation water as well. If not, the estimate should be revised to include irrigation requirements. Also, although required by NLRB Rules, annual water demand volumes are not provided. Use or evaporation of water exposed during mining operations will consume native water supplies tributary to North Clear Creek and injure existing water rights. Therefore, the permit should include language that any water exposed as a consequence ofmining cannot be used for mining operations, or stored, without a substitute water supply plan approved by the Division of Water Resources (NLRB Rules, §3.1.6(i)(a)). 2. Ability to Pass In-stream Flows: Per the applicatton: Due to the location of the quarry operations, the initial phase ofmining will obstruct the passage of instream flows in ephemeral tributaries. Additionally, installation of a processing/loadoutsite isanticipated to fill a small drainage within the proposed site boundary. The applicant proposes to build drainage diversions in these areas to allow the passage of instream flows around the obstructions and back to their original drainage routes. These proposed diversions may include sediment control basins to address potential water quality concerns prior to discharging the natural flow. Comment: The applicant's proposed plan to operate sedimentation control basins will cause injury • to Black Hawk's water rights. According to Mike McDermid's Mazch 15~h, 2005 memorandum to Alex Schatz ofBanks and Gesso, the sedimentation basins will retain water in the reclamation soils or consume the water by evapotranspiration to the injury of Black Hawk's water rights. If the permit `~) LEONARD RfCE ENGINEERS INC.