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Mr. Tom Schreiner May 25, 2005 Page 3 • is approved, Black Hawk requests the following conditions in the permit to ensure that little to no injury occurs to Black Hawk's water rights (NLRB Rules, §3.1.6(1)(a)): • The permit should include language that all waters conveyed via these drainage diversions may not be used as part of the mining operation or for reclamation. • Water cannot be stored in control basins without replacement of evaporation depletions through an approved substitute water supply plan. 3. Post-Reclamation Uses: Per the application: Both the precondition and post-condition of the proposed mining site will be for wildlife habitat. Comment: There have been quotes in the local press -attributed to Mr. Lembke (the applicant) - regazding ultimate use of this site as a water storage unit. A water storage reservoir located at this site would disrupt base flows within the North Cteaz Creek and Cleaz Creek basins. A reservoir would likely intercept snowfall and rainfall out-of-priority and would negatively impact Black Hawk's exchange potential up North Clear Creek. Additionally it would be difficult to pass these native flows if a dam is built on site. The suggested ultimate use of the site for water storage would • likely injure Black Hawk's water rights portfolio. Also, the Colorado Mined Land Reclamation Act (CMLR Act) states "prior to approving any new reclamation plan or approving a change of any existing reclamation plan..., the Board shall confer with the local Board of County Commissioners..." (Act 34-32-116(7)). Although the application does not currently state the post-reclamation use of the site will be storage, the NLRB should be aware of its requirement to confer with the local Boazd of County Commissioners before approving a change to the existing reclamation plan. 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 permit should be conditioned to require the applicant to adequately address the above comments should any amendment to the permit be sought changing the post-mining use from wildlife to developed water resources. 4. Ground Water and Surface Water: Pertheappltcation.• Throughout the mining process, no ground water wells will be installed and no dewatering is anticipated at the site. Local ground water supplies will not be affected because the depth to ground water below the quarry is greater than 400 feet and the fractured aquifer underlying the project site is typically a very poor nontributary aquifer. Furthermore, there are no perennial • streams on the subject property (Exhibit G -Water Information). Comment: The NLRB Rules require certain infomtation be provided if the operation is expected to directly affect the ground water system (NLRB Rules, §6.4.7(2)) and require compliance with LEONARD RICE ENGINEERS. INC.