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Dudash, Joe <br />From: Jim Kiger [Jim_Kiger@omi.oxbow.com] <br />Sent: Thursday, September 30, 2004 7:52 AM <br />To: Burnell, Jim; Brown, Sandy; Joe Dudash <br />Subject: Fw: Oxbow TR-47 Water Plan <br />Since Joe is now on vacation for two weeks I assume this email is directed <br />to Sandy and Jim. <br />Please see the following comments from Kathy Welt regarding the substitute <br />water supply plan. <br />As the call on the river ended September 22, the substitute water supply <br />plan is now moot. We are operating now on our 1.8 CFS water right. <br />Will this resolve the remaining issues absent MSHA approval? <br />Please call if you have questions. <br />Thanks <br />Jim Kiger <br />OMLLC <br />----- Original Message ----- <br />From: "Kathy Welt" <kathy welt@oxbow.com> <br />To: "Jim Kiger" <Jim Kiger@omi.oxbow.com> <br />Cc: <jim cooper@oxbow.com>; "brad goldstein" <brad goldstein@oxbow,com> <br />Sent: Wednesday, September 29, 2004 9:27 PM <br />Subject: Re: Oxbow TR-47 Water Plan <br />> Jim, <br />> Thanks for sending me this FYI, After reading through the correspondence <br />> between Joe Dudash and Dick Wolfe, I'd like to offer my comments and a <br />> suggestion for resolution of the question regarding Oxbow's legal right to <br />> transfer surface water for "permanent" underground storage. <br />> First, I will warn you that this subject (of water rights and the <br />> augmentation of those rights during periods of a senior right's call on <br />all <br />> junior rights) can be very difficult to comprehend - it's taken me years! <br />> The mine is well aware that its current augmentation plan (per case <br />97CW138) <br />> is insufficient for its current operations. That is exactly the reason why <br />> Oxbow secured leased water from Fire Mountain Canal (and is pursuing water <br />> from the Bureau of Reclamation) and then prepared a projection of its <br />water <br />> pumping, calculated its depletions (or consumptive use) and submitted a <br />> supplemental, Substitute Water Supply Plan (SWSP) last year and this year. <br />> That SWSP already assumes that 85~ of the water that we pump into the mine <br />> is consumed (depleted). Based on the assumption that Oxbow pumps lOMM <br />> gallons per month into the mine and that 858 (or 8.SMM gallons) of it is <br />> consumed, the 3MM gallons that we are proposing to pump into the abandoned <br />> C-seam workings is already covered by the substitute supply by more than <br />2.5 <br />> times that amount - - BUT, that assumes that we are we are pumping that <br />3MM <br />> gallons of mine sump water to the C seam for permanent storage during a <br />> period when our junior water right is called out of the river and that <br />this <br />> water is consumed/ depleted and must be augmented with a substitute <br />1 <br />