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STIPULATION N0. 7 A PERFORMANCE BOND IN THE AMOUNT OF $300,000 PAYABLE TO THE STATE OF~COLORADO AND THE OFFICE OF SURFACE MINING, MUST BE FILED WITH THE DIVISION BEFORE CONSTRUCTION BEGINS OR WITHIN 30 DAYS OF PERMIT REVISION APPROVAL. XXI. Sealin of Drilled Holes and Under round 0 enin s (2.05.4(2)(9), 4.0 The method for sealing portals in Section 2.05.4 of Volume I was reviewed by the Division for compliance. the openings will be sealed using two concrete block bulkheads with a minimum of~25 feet between them. The space between bulkheads will be completely filled with an noncombustible material. This should eliminate any chance of water discharge from the portals following sealing. Exploration drill hales, boreholes, or wells not completed in an aquifer will be sealed by replacing cuttings in the hole and placing a cement plug in the top of the hole from ten feet down to within three feet of the ground surface. If a hole is completed in an aquifer, it will be sealed by placing an approved cement or sealant in the hole from the bottom to within ten feet of the ground surface. A cement plug will be placed in the upper teu ieei.. The proposed operation is in compliance with the requirements of this section. XXII. Subsidence (2.05.6(6) and 4.20)_ Powderhorn Coal Company has completed a survey of structures and renewable resource lands existing within the permit area. The applicant has delineated several structures overlying the proposed underground workings. The Ute Water District, which serves approximately 45,000 people, has a water treatment plant, several storage tanks, and a 24-inch treated water distribution pipeline above the existing Roadside mine workings. Several raw water collection pipelines also cross the proposed Cottonwood mining area. Limited alluvial deposits, which represent minor surficial aquifers, do exist within the flood plain areas of Cottonwood Creek and Rapid Creek drainages. The proposed five-year mine plan does not involve additional mining below the Ute Water Conservancy District facilities or supply pipelines. Mining will, however, occur beneath Rapid Creek and Cottonwood Creek within the permit area. Extraction is also projected beneath the raw water collection pipelines within the Cottonwood lease area. In the case of both the supply and raw water pipeline facilities, the worst possible anticipated consequence of mining would be the disruption of the pipeline. In both cases, the applicant has demonstrated that the materials necessary for repair are readily accessible and that the disruption would not result in cessation of service to the water district's water users. The applicant proposes to prevent material damage to both the raw water collection pipelines and the channels and associated alluvial aquifers of both Rapid Creek and Cottonwood Creek through the retention of stable pillars. -36-