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Oxbow Mining,. LLC Elk Creek Lease -Special Stipulation Section 15 (d)(1) Water Replacement Plan March 31, 2003 INTRODUCTION Oxbow Mining LLC (OMLLC) has operated under the Colorado Division of Minerals and Geology (CDMG) Coal Mining and Reclamation Permit C-81-022 since 1981. The permit document presents numerous sections of text, exhibits and maps describing how the operation could impact the hydrologic balance and how the operation will mitigate the effects of mining to minimize or eliminate potential adverse effects to the local surface and groundwater resources. Specifically, the CDMG permit provides an extensive description of the local surface and groundwater resources, a description of measures to protect such surface and groundwater resources, protection and or replacement of adjudicated water rights, surface and groundwater monitoring and reporting prior to, during and after mining activities have been completed, etc. To facilitate compliance with the requirements of the Elk Creek Federal coal lease Syecial Stipulation Section 15 (dl(1) Water R~lacement Pian, OMLLC had already incorporated all aspects of the Plan into the applicable discussions of the CDMG permit ~ document. CDMG Permit Revision Application No. 5 (PR-5) was the vehicle by which the mine plan for the Elk Creek was incorporated into the permit. CDMG approved PR-5 on January 27, 2003. In January, 2003 the Montrose Bureau of Land Management (BLM) presented OMLLC with a document titled "Recipe for a Water Replacement Plan Associated with Coal Mining Activities. " While the "Recipe" acknowledges that existing info/data that is readily available in other documents may be referenced, the BLM requested that OMLLC provide a document that presents, under a separate cover, the description of the Water Replacement Plan for the Elk Creek Federal coal lease. While the following information follows the format of the "Recipe for a Water Replacement Plan Associated with Coal Mining Activities" numerous citations are made to the CDMG permit as the source document for much of the information described herein. We have also made copies of the information and included it herein as Appendices to this plan. Where references are made to specific page numbers of the CDMG Permit, the reader may also refer to the following Appendices for the information. ELK CREEK LEASE HYDROLOGIC SETTING AND INVENTORY CDMG Permit pages 2.04-18 through 78 provide an extensive description of the . groundwater and surface water resources (water sources, quality, quantity, seasonal flows, water rights, etc.) Permit maps Regional Geology/Hydrology Map 2.04-M2,