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OF COLORADO OFFICE OF THE STATE ENGINEER Division of Water Resources APR 2 0 2005 Department of Natural Resources 1313 Sherman Street, Room 818 Division ~f Minerals and 6eolo y Denver, Colorado 80203 Phone (303) 866-3581 RCSI10riSe IO Permlt ReVI$lon App11C3tlOn taon$lderatlon FAX (303) 866-3589 www.waterstate.co.us DATE: April 19, 2005 TO: James R. Stark, Environmental Protection Specialist oe cow ~o h°'- ~ ~~ f R r r ~ 1876 ~` Bil( Owens Governor Russell George Executive Director Hal D. Simpson, P.E. State Engineer CC: Division 6 Office; District 43 Water Commiss~ioAne~r FROM: Cynthia J. Love, Water Resource Engineer L~~ RE: Operator: Blue Mountain Energy, Inc., Deserado Mine, File No. C-1981-018, PR-5 Various sections, Twp 2N, Rng 101 W, and Twp 3N, Rng 101 W, 6th P.M., Rio Blanco County Landowner- Blue Mountain Energy, Inc. and U.S. Bureau of Land Management CONDITIONS FOR APPROVAL ^ The proposed operation does not anticipate exposing groundwater. Therefore, exposure of ground water must not occur during or after mining operations. ^ The proposed operation will consume ground water by ^evaporation, ^dust control, ^reclamation, ^water removed in the mined product, ^processing, ^other: Prior to initiation of these uses of ground water, the applicant will need to obtain either a gravel pi[ or other type of well permit, as applicable. Prior to obtaining a permit, an approved water supply plan or decreed plan for augmentation is required. ^ Prior to approving a well pemtit, the applicant must conduct a field inspection of the site and document the locations of all wells within 600 feet mile of the permit area. The applicant must then obtain a waiver of objection from all well owners with wells within 600 feet of the permit area or contact this office regarding [he 600 foot spacing notification/hearingpvocess. ® The proposed operation may have potential impact on existing water rights near [he project location. Please provide evidence that the proposed project will not alter or impact the historic operation of existing water rights. ^ The applicant has indicated plans to use other water for: uses at the permit site, storage in the excavated area(s). The applicant will need to provide evidence to this office that the water Is permitted or decreed for such uses. ^ Other: COMMENTS: This application for expansion of the mine pemtit area included no information as [o [he potential impacts on existing water rights near the project location, nor did it include information regarding changes in amounts or uses of water at the permit site. As such, the permittee is limited [o the amounts and uses currently allowed under their existing permit.