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i modifications to existing permits required to address prevention of injury to water rights. The coordination will entail the following: 1. During any pre-application meetings with applicants or operators, each party will advise the applicant or operator of the need to contact the other party where mining or injury to water rights are indicated. 2, DMG will notice the SEO of any new mineral mine permit applications and modifications to existing permits where potential impacts to water resources may occur. The notice will be sent to a designated person by the SEO. If the DMG receives comment back from the SEO that the proposed mining or reclamation activity has the potential to cause injury to water rights, the DMG will forward the SEO comments to the applicant. DMG will advise the applicant to respond to the SEO and provide the DMG copies of such correspondence. Where an applicant does not demonstrate compliance with SEO requirements, DMG or the MLRB may deny the application. 3. In the comment letter to DMG, the SEO will provide DMG options available to the applicant to address SEO requirements. Where an applicant chooses to install slurry walls, clay liners, or backfill the pit, DMG will confer with the SEO on the proposed plan, and calculate and hold the appropriate financial warranty. 4. DMG will calculate and hold any financial warranties that may be posted by the applicant to meet SEO requirements such as slurry walls, clay liners, backfilling, or pumping during the period of reclamation. DMG cannot hold financial warranties to cover the cost of substitute supply plans, plans of augmentation, or perpetual pumping to eliminate a permanent pond. 5. Where the applicant proposes to address SEO requirements via a substitute water supply plan, and the operator and the landowners are legally separate entities, the SEO will supply the DMG a brief letter of explanation of potential liability. This letter will be forwarded by DMG to the landowner. The "letter" is intended to make the landowner aware of SEO requirements in the event the operator defaults on meeting SEO requirements once the MLRB permit is issued, and potential water resources are impacted. 6. Where the applicant proposes to address SEO requirements via a substitute water supply plan, or a plan of augmentation, the SEO will provide an SEO conf`itmation of compliance letter to DMG indicating that the applicant has satisfied SEO requirements. The SEO will provide such SEO confirmation of compliance letter prior to the DMG required decision date for approving or denying the application. In the event the applicant and the SEO have not