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Dan Mathews <br />Page 4 <br />April 17, 2006 <br />this well be retained for future monitoring. GW-7 is located more than a mile down <br />gradient of Munger Canyon and depending on the completion of this well, it may serve as <br />a groundwater point of compliance and be used for future bond release demonstrations. <br />The Division concurs with permanent sealing of wells GW-2, GW-4, and GW-8 in <br />accordance with Rule 4.07.3. <br />8. During this AHR review records at the State Engineers Office were reviewed. Three well <br />permits were identified withia a two mile radius of Munger and McClane Mines; one is <br />located in Section 21 for the diversion of groundwater for the McCale Canyon Mine <br />(permit no. 32752), permit no. 254049 was in Section 31 for a domestic use well that has <br />since been abandoned, and permit no. 256862 is an existing alluvial well in Section 29 <br />permitted for domestic use. As a result of this review the Division requests that Section <br />4,2.5 of the McClane permit be modified to include this information. Page 4-18 states <br />that no wells are registered with the Colorado Division of Water Resources within two <br />miles of the permit area. Please revise the water rights discussion on page 4-18 <br />accordingly. <br />On page 2-44 of the permit, it is stated, "there are no adjudicated groundwater rights <br />within more than two miles of the proposed permit area". The Division concurs, however <br />this does not exclude the operator from groundwater quality protection. Since there is a <br />domestic use well within relatively close proximity to the mining activity and located in <br />the East Salt Creek alluvium, "Domestic Use -Quality" classification of the Basic <br />Standards For Ground Water may apply to the specified area of the mining activity and <br />East Salt Creek alluvium. <br />Please let me know if you have any questions regarding my review of the 2005 AHR for the <br />McClane and Munger Canyon Mines. <br />C: Sandy Brown <br />