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-12- No degradation in ground water quality is anticipated. During mining, the applicant anticipates consuming all the ground water that collects in the mine for dust control and coal processing within the mine, thereby producing no mine discharge. Following mining, new springs, fed by water supplied by the accumulation of water in the underground workings, could form. At present it is not possible to predict the water quality of these springs. However, they would be such a minor contribution of the water supplied to the alluvial valley floor, no degradation of water quality in the alluvial valley floor is anticipated. Surface coal mining and reclamation operations would be conducted to preserve, throughout the mining and reclamation process, the essential hydrologic functions of alluvial valley floors not within the affected area (Rule 4.24.2). None of the proposed mining activities are located within the alluvial valley floor and the natural geologic and hydrologic characteristics of the valley floor would not be disturbed. In addition, mining operations are not expected to affect the quantity and quality of surface and ground water that supply the alluvial valley floor. Alluvial Valley Floors - Monitoring (Rule 4.24.5) The applicant's normal surface water and ground water monitoring along with the U.S. Geological Survey monitoring at Somerset is sufficient to monitor the effects to the essential hydrologic functions of the alluvial valley floor. However, the following stipulation is required if the USGS station is discontinued: Stipulation No. 2: IN ITS ANNUAL HYDROLOGY ASSESSMENT, THE APPLICANT SHALL INCLUDE WATER QUANTITY DATA FROM THE U.S.G.S. SOMERSET MONITORING STATION. SHOULD THE U.S.G.S. DISCONTINUE MONITORING AT THIS LOCATION, THE OPERATOR SHALL SUBMIT ITS OWN QUANTITY MONITORING PROGRAM FOR THE NORTH FORK OF THE GUNNISON. VIII Water Rights and Replacement (2.04.7(31, 2.05.6(3), (ii), 2.07.6(2)(c As requested by MLRD, the State Engineer's Office, Division of Water Resources has reviewed the application and identified the following problems with regard to the operations proposed under the 5-year permit application and to portions of the leased area outside of the initial 5-year permit area. In addition, several concerned citizens have identified similar problems within the lease area which are beyond the initial 5-year permit boundary, in particular the Minnesota Creek Drainage Basin which provides a significant amount of water to many farming and ranching operations in the Paonia area. All problems associated with the operations proposed under the initial 5-year permit application have been satisfactorily resolved, but many of the concerns which pertain to lease areas outside of the initial permit area, such as the Minnesota Creek Drainage Basin, have not been satisfactorily resolved and must be stipulated.