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Motmbm Coal Corz~pmy, LLC. west Ilk Rtmc Somovey Colorado Mimicwta Cmar and Resm~ovCoop<-ny MomimaM nom Fannie, Coimado December 29, 2006 Colorado Division of Water Resources Water Division Four Attn: Jason Ward }871 East Main Street P. O. Box 456 Montrose, CO 81402 RECEIVED JAN 0 9 2001 Division of ftocl.3mation, Mining and Safely Deaz Mr. Ward, Over the past several weeks Minnesota Canal & Reservoir Company (MCRC7 and Mountain Coal Co (MCC) have been discussing (with you and others) the assumptions for the desigtr of the "preventive »reastn-es" far Mommt~t Dam. Preventive measures are required to satisfy MCC's mining permit e, stipulated by Colorado Division of Reclamation, Mitring and Safety (DBMS). Iust a few weeks ago, the jurisdictional height of the dam was confirmed and that height corresponds to a "small" dam category. You have also identified two downstream structures that could cause DWR to revise the harerd classification of the data Cltrrently the ]rarerd class is "significant" It is our tirrdetslanding that these downstream strucuues will now require evaluation and the dam could potentially be reclassified to a mote critical category, i.e. "high" hazard classification. With a few issues still unsettled, including the hazard class determination, there has been tmcer[ainty as how to proceed based on the matrix of various scenarios. It behooves MCRC and MCC to proceed with a design and plans for coastn:ction that ensttres there is no rework or redesign required once the project is underway or eti~en completed. The telephone call with you, Tim NorHeer; Barr Engineering and tts on December 12 was helpful in at least identifying the options we have available in moving forward with a design that meet our mutual intent and satisfies the regulatory regime. MCRC and MCC propose a design strategy that specifically includes the assumption that the dam is classified "high" hazard, although the current class is "significant, while leaving tbe spillway in its ctnrent configtuation. With your acceptance of this design strategy and with your approval of the final design, the resultant preventive measures will address DRMS's concern with mine-induced seismic impacts from the proposed mining and modifications. The design, based on high ]razed class, will address DRMS's concem now and in the future once the dam is officially reclassified. Additionally MCRC and MCC believe that DWR, once the approved Monument Dam preventive measures are in glace, will remove the existarg rnonitorurg and reporting requirements associated with the limited fill restridioa However, we understand a decision on the removal of these existing requirements may rot be made at this time. MCRC and MCC propose these assumptions as the strategy to move forward. If you lmow of issues that we should consider with this approach, please advise our parties accordingly. Otherwise, we request your confumatioa That confirmation will allow us to proceed m a mat-mer that keeps w from looking back or questioning our approach. Please contact MCRC and MCC at your earliest convenience if there are questions or clarifications to this request 'Thanking you in advance, _ ~ ~~~ Willy Ki Phil G. Sclumdt Minn Canal and Reservoir Co - Mountain Coal Company, L.L.C.