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-20- As previously mentioned the only mine activity within the Terror creek watershed is a 92 acre (approximately) area that is to be mined by underground methods. No surface mining or surface facilities are proposed within this watershed. The operator does not predict any hydrologic impacts that could significantly impact either the quality or quantity of water in Terror Creek. No subsidence features will extend in or adjacent to Terror Creek, the proposed workings are 2,000 feet west of the creek. Based on this information the Division makes the following findings: 1. Pursuant to Rule 2.06.8(5)(a)(i), the Division finds that the proposed surface mining operations, would not interrupt, discontinue, or preclude fanning on alluvial valley floors (Rule 2.06.8(5)). 2. Pursuant to Rule 2.05.8(5)(a)(ii), the Division finds that the proposed surface coal mining operations would not materially damage the quantity and quality of water in surface and groundwater systems that supply those alluvial valley floors or portions of alluvial valley floors. 3. Pursuant to Rule 4.24.2(1), the Division finds that the proposed surface coal mining operation has been designed to preserve the essential hydrologic functions of alluvial valley floors. VII. WATER RIGHTS AND REPLACEMENT (2.04.7(3), 2.05.6(3)lii), The Orchard Valley mine consumes approximately 30,000 GPD for use at the mine. This water supply is drawn from a well field which taps the alluvium of Stevens Gulch. This removal of water from Stevens Gulch could affect the flows in the North Fork of the Gunnison River which Stevens Gulch is tributary to, and so the applicant has obtained an approved augmentation plan through Division 4 Water Court to replace water removed from Stevens Gulch. Please refer to the Augmentation Appendix in Volume 2 of the 1981 application. The plan uses releases from East Beckwith No. 1 Reservoir, located in the Anthracite drainage, to compensate for any injury to other vested water rights or, for this purpose, the North Fork alluvium. This plan is discussed on page 72, Section 2.04 of Volume 8 of the 1981 application. The proposed operation is in compliance.