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STATE OF COLORADO <br />DIVISION OF WATER RESOURCES <br />WATER DIVISION FOUR <br />Office of the State Engineer <br />Department of Natural Resources <br />1540 E. Niagara <br />P.O. Box 456 <br />Montrose, Colorado 81402 <br />Phone (970)249-6622 <br />Fax (970)249-8728 <br />May 26, 2004 <br />Jim Burnell <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Augmentation plan for West Elk Coal Company, Minnesota Creek <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Hal D. Simpson <br />Slate Engineer <br />Frank J. Kugel <br />Division Engineer <br />As we discussed in the meeting of April 13, 2004, the West Elk Coal Company has a decreed augmentation plan <br />to address the possible impacts to the Minnesota Creek stream system. At your request, we have reviewed the <br />Plan. A court decree was obtained that converts senior and junior water rights and water stored in Minnesota <br />Reservoir from irrigation to replacement for mitigating potential impacts from mining activity. The Plan also <br />sets up specific measuring structures to measure the stream flow and the quantity of effects to the stream system. <br />The Augmentation Plan appears to be adequate to replace the mining impacts tD the stream system as decreed. <br />However, the adequacy cannot be determined until the full extents of the impacts are known. If the Plan is not <br />sufficient to provide replacement for the mining effects, which appears unlikely, then the mine could purchase <br />other water rights and include them in the Plan for Augmentation. <br />If you have any other questions, please call or write this office. <br />Wayne I. Schieldt <br />Assistant Division Engineer <br />