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. Carl Mount <br />June 22, 1989 <br />Page 2 <br />Regarding Temple Well No. 1, Peabody has entered into an <br />agreement with the owners (H.B. and D.J. Epps and M.D. and <br />F.T. Hudson) which holds Peabody harmless for any impacts to <br />Temple Well No. 1 and its associated water right which may <br />occur as a result of mining and reclamation activities at <br />II-W. The agreement specifically acknowledges that the <br />mining operation may interfere with the flow and quality of <br />water, and that the owners waive any claim arising from such <br />interference. In return, Peabody has agreed to permit, <br />drill, and case a well yielding sufficient quantity and <br />quality of water for watering livestock. This agreement <br />clearly shows that the owners of this well are aware of the <br />possible effects and are satisfied with Peabody's proposed <br />plan. <br />The Olson Spring is specifically discussed in Tab 7, pp. <br />7-193a and 7-143b (revised April 15, 1985). The conclusion <br />drawn at that time was that there would be no detectable <br />impact to water quality on the Olson Spring. Subsequent to <br />the initial permitting, Peabody has contracted with <br />Geotrans, Inc. and Tipton and Kalmbach, Inc. to further <br />' evaluate the potential for impact on water rights, which <br />report was subsequently used to develop the Augmentation <br />Plan. Their conclusion coincided with the initial permit, <br />concurring that it is unlikely that excavation of the mine <br />pits will affect the flow at the Olson Spring because of the <br />topography and because the spring is not hydraulically <br />connected to the formations that will be disturbed by <br />mining. <br />In any case, revised pages 7-156 through 7-157 (Alternative <br />Water Supply information) details a monitoring plan which <br />would identify any potential impacts to the Olson Spring <br />before such impacts would affect the spring and detail a <br />plan for. replacement should impairment of this source occur. <br />Since it is concluded that mining will not impact this <br />spring, there is no need to specifically include it in the <br />formal Augmentation Plan. However, as shown on the <br />above-referenced pages, Peabody is taking specific <br />monitoring steps to assure that impacts, should they occur, <br />will be mitigated in accordance with the requirements of <br />Rules 2.04.7(3) and 4.05.15. <br />Recent correspondence between the Olsons, Peabody, and the <br />Division have also raised the potential issue of the Olson <br />Well. The Olson Well was an exploration hole drilled by <br />' Freeman United Coal Mining Company. Attached to this letter <br />is a copy of the geophysical log of this well. The boring <br />