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Schedule, Exhibit 13-2. No problems were noted at any of the permanent sediment pond locations during the Phase I bond release inspection. Because the potential exists that the permanent sediment ponds may beout-of-priority at some time with regard to water rights, and that absent a decreed plan for augmentation, SCC will be required to either bypass or release out-of-priority inflows, including lowering the pond water-level elevation to account for out-of-priority inflows that replace evaporative losses. In cooperation with DRMS and the Office of the State Engineer, Division of Water Resources, SCC has committed to installing pumps at Ponds 002, 003, and the PECOCO Pond and providing a flexible siphon pipe at both the 004 and 008 impoundments to release out-of-priority inflows, if and when required. The pumps and siphon pipes will be maintained in an operable condition. SCC understands that the Division Engineer has the authority to order the installations of low-level outlets capable of releasing all storage from the structures or breech of the structure(s) to assure that senior appropriators receive the water to which they are entitled by law. As stated in the permanent impoundment demonstrations for the PECOCO Pond and Ponds 002 and 003 (Appendices 7-6g and 7-10 of the PAP), SCC will fully inform private landowners of the State Engineers authority in this regazd. Ponds 004 and 008 are within State of Colorado owned land. The twelve approved permanent Stock Ponds T-4, T-8, T-16, T-17, T-2Q, T-26, T-28, T-29, T-30, T- 31, T-32, and T-33 aze all constructed in reclaimed azeas and are not primary sediment control structures. The permanent stock ponds provide water for livestock and wildlife and will enhance both postmine land uses. Stock ponds are routinely inspected during complete inspections. All stock ponds have a capacity no greater than two-acre feet and embankment height no greater than five feet as measured from the invert of the spillway to the upstream toe of the embankment. Stock pond inlets, embankments, and spillway structures are stable. All side slopes and surrounding azeas aze stable and well vegetated. No problems were noted with any of the stock ponds during the Phase I bond release inspection. The stock ponds aze included in the Phase I bond release acreage because they will remain as permanent features. All twenty-three permanent post-mine drainage channels were inspected as part of this Phase I bond release to assess general design compliance. Comparison of the post-mine contour map (Exhibit 12- 9) with USGS 7.5 minute Quadrangle Maps of Mount Hams and Milner, Colorado indicate that the major pre-mining drainages were reconstructed in the appropriate locations. Additional drainage density was added to the post-mining landscape by constructing additional post-mine channels. To the extent possible, drainage channels were reestablished to their original natural pattern to minimize erosion, to conserve soil moisture, and promote vegetation. Reconstructed drainages blend well with off site drainage patterns and the drainage density is appropriate and similar to adjacent undisturbed areas. The entire tributary drainage system within the reclaimed azeas has been reconstructed and is functioning, with exception of Channels PM-8, PM-8A, and PM-8B in the East Wadge Pit azea discussed below in this document. All permanent drainage channels were inspected for function with regazd to knickpoints, blending at disturbance boundaries and channel erosion. Channe- gradients were measured at major drainages to evaluate compliance with design criteria. Due to the steepness of the mined azeas, channel gradients were also relatively steep. Channel slopes measured with an 12