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the SEO that the proposed mining or reclamation activity has the potential to cause injury to <br />water rights, the DMG will forward the SEO comments to the applicant. DMG will advise the <br />applicant to respond to the 5E0 and provide the DMG copies of such correspondence. Where an <br />applicant does not demonstrate compliance with SEO requirements, DMG or the MLRB may <br />deny the application. <br />3. In the comment letter to DMG, the SEO will provide DMG options available to the <br />applicant to address SEO requirements. - Where an applicant chooses to install slurry walls, clay <br />liners, or hackfill the pit, DMG will confer with the SEO on the proposed plan, and calculate and <br />hold the appropriate financial wazrauty. <br />4. DMG will calculate and hold any financial warranties that may be posted by the <br />applicant to meet SEO requirements such as slurry walls, clay liners, backf~lling, or pumping <br />during the period of reclamation. DMG cannot hold financial warranties to cover the cost of <br />en <br />pond. <br />5. Where the applicant proposes to address SEO requirements via a substitute water <br />supply plan, and the operator and the landowners aze legally sepazate entities, the SEO will <br />supply the DMG a brief letter of explanation of potential liability. This letter will be forwarded <br />by DMG to the landowner. The letter is intended to make the landowner aware of SEO <br />requirements in the event the operator defaults on meeting SEO requirements once the MLRB <br />permit is issued, and potential water resources are impacted. <br />6. Where the applicant proposes to address SEO requirements via a substitute water <br />supply plan, or a plan of augmentation, the SEO will provide an SEO confirmation of compliance <br />letter to DMG indicating that the applicant has satisfied SEO requirements. The SEO will <br />provide such SEO confirmation of compliance letter prior to the DMG required decision date for <br />approving or denying the application. In the event the applicant and the SEO have not concluded <br />their process such that the SEO cannot issue SEO confirmation of compliance letter, the SEO <br />will notify the DMG prior to the application decision date of the unresolved SEO issue. DMG <br />may then issue conditional approval, with the concurrence of the SEO, which includes provisions <br />to protect potentially impacted water resources. <br />7. SEO will assist DMG staff in locating filings on springs, seeps, wells,..etc. during the <br />DMG permit review or enforcement process. <br />Inspections and Monitoring: <br />The parties agree to coordinate inspections and monitoring of mine sites in the following manner: <br />1. During the course of conducting its normal mine site inspection obligations, <br />DMG will ensure that the operator is in compliance with those aspects of the approved <br />reclamation plan that is designed to prevent injury to water rights. Such practices may include, <br />