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4. The Board appointed a prehearing conference officer who conducted a prehearing <br />conference on July 25, 2003 in Denver, Colorado, and prepared a proposed <br />prehearing order. <br />5. The Board adopted the proposed prehearing order with modifications to reflect the <br />withdrawal of Merit Energy Partners III, LP as well as the absence of Randy Wolf <br />and Mary S. Johnson. <br />6. The Division recommends approval of this application with one condition, set forth <br />below. <br />7. The issues set forth in the prehearing order are: <br />A) Has the Applicant complied with the State Engineer's rules governing <br />injuries to water rights? <br />B) Has the Applicant proposed measures to minimize impacts to the <br />hydrologic balance in the alluvial aquifer beneath the proposed mine site <br />to protect ground water quality and quantity? <br />C) Has the Applicant provided an adequate description of the general effect <br />during and after the proposed mining operation on the existing wildlife of <br />the area, including temporary loss of habitat and the general effect on the <br />wildlife from increased human activity? <br />Injury to Water Rights and Minimizing Impacts to Groundwater and the <br />Hydrologic Balance <br />8. The Applicant proposes to install a slurry wall around an eighty-nine acre <br />excavation site. The purpose of this wall is to impound water for three <br />proposed permanent ponds and to keep the pit dry during mining. <br />9. The Objectors are concerned about the Applicant's proposed slurry wall and <br />possible impact on water wells located in the vicinity of the proposed mine <br />site. They are concerned about the possibility of flooding if groundwater rises <br />