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~~~~Q RFCFI~/gyp ~G AUG 312006 Division of Reclamation, Mining and Safety Response to Reclamation Permit Application Consideration DATE: August 31, 2006 TO: Michael P. Boulay, Environmental Protection Specialist CC: Division 6 Office; Andrea Schaffner, District 57 Water Commissioner FROM: Craig M. Lis, P.E. RE: Operator: Seneca Coal Company, Seneca II Mine, Technical Revision 37 Routt County Pond 002 (aka Wadge Pit Reservoir) - 1810 feet from the NE Comer of Section 34, Twp 6 N, Rng 87 W, 6th P.M., along a bearing of S 37°lY W Pond 003 (aka Grassy Creek Impoundment - 3640 feet from the SE Comer of Section 27, Twp 6 N, Rng 87 W, 6th P.M., along a bearing of N 77° W PECOCO Pond - 1930 feet from the NW Corner of Section 2, Twp 5 N, Rng 87 W, 6th P.M., along a bearing of S 06°40' E We have reviewed the response, and agree that the installation of pumps would be acceptable at this time for Ponds 002 and 003, and the PECOCO Pond, so long as the pumps are maintained in an operable condition, with the caveat that this office may issue an order to backfill the ponds in the future if water stored out-of-priority is not released to the stream. If backfilling of any of the ponds is not acceptable due to permitting requirements of other agencies, the operator should consider obtaining a water court approved plan for augmentation to replace all out-of-priority depletions are replaced to the sneam in time, place and amount to assure that injury does not occur to the vested water rights of other appropriators. Note that the description of the bypass structure for Pond 003 was unclear, but did not appear to meet our requirements. If the operator would like us to consider the bypass structure option further, I suggest submittal of a diagram illustrating the operation of the bypass accompanied by a detailed description of the operation. As previously stated, changes in the call scenario may result in an order from the Division Engineer requiring the installation of bypass structures capable of diverting all inflows azound the ponds and back to the stream, the installation of low-level outlets capable of releasing all storage from the structures or breech of the stmctures to assure that senior appropriators receive the water to which they are entitled by law. Review of the submitted materials indicates that the operator is awaze of [his possibility and will fully inform the landowner of the State Engineer's authority in this regard.