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IV, Geology - Rules 2.04.5 and 2.04,6 The content of this portion of the updated permit application has been altered. The geologic report included in the original application has been replaced with one of later vintage and greater geological detail. The analytical data and copies of wire line logs through the local coal bearing sections, which were included in the original permit application, have been retained in the updated version. The present and proposed operations are in compliance with the requirements of this section. V, Hydrologic Balance: Surface Water - Rules 2.04.5, 2.04.7(2), 7,05.3(4), 2.05.6(3), and 4.05 Surface Water Baseline Information The content of this portion of the original permit application remains adequate for the Animas Mine site and surrounding area. The area of potential impact of runoff from the disturbed areas of the Animas Mine, however, was considerably enlarged during the first permit term by the addition of three railroad loadouts in the City of Trinidad. These loadouts are in close proximity to the Purgatoire River and the John Flood irrigation ditch, but their total areal extent is quite small, The volume of their runoff is relatively insignificant. Furthermore, the sediment and surface runoff control plan implemented for the loadouts eliminates any discharge for storms up to a 10 year event. These areas should have no measurable impact on the surface water supplies in the permit or adjacent area. The present and proposed operations are in compliance with the requirements of this section. Sediment and Runoff Control Subsequent to approval of the original permit application and the satisfaction of Stipulations 1, 2, and 3 of the original Findings, modifications were made in the design of sediment control ditches, permanent and temporary diversions, and the sediment pond at the mine site. The changes in the design of the sediment pond, northern sediment control ditch, and diversion ditches 1 and 2 were approved as part of a permit revision proposed during the first permit term to enlarge the coal processing waste pile. These changes, which are incorporated into the updated permit together with the planto expand the waste pile, were never implemented during the first permit term. The mine ceased active operations shortly after approval of the permit revision. Asa result, the present sediment pond, diversions, and sediment collection ditches have original design parameters. As noted on page 441 of the updated permit application, the sediment control ditch at the south end of the refuse facility experienced problems with excessive erosion during the first permit term. A minor -12-