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West Elk Mine 2003 Annual Hydrology Report were developed using a rating curve developed from channel geometries measured in May 2002, but the raw data remains suspect. The Upper Dry Fork stream station was submerged by a beaver pond in WY2002 and remained inoperable in WY2003. In addition, accumulated sediment in the upper Minnesota Creek station needs to be removed to improve flow through. Since the well casings have collapsed in wells SOM-45-H1 (Sept. 2002), SOM-2-H (Jul. 1999), SOM-16-H (Sep. 2000), 96-27-1 (Apr. 2002), and SO.W-1 (Jun. 2002) water quality and water level data is not considered accurate and now these wells are dysfunctional. 7.0 SUMMARY During WY2003, the Project was in regulatory compliance with all hydrologic aspects. Mining operations did not cause any significant impacts to local surface or ground water resources. The drought conditions during the past few years abated in WY2003 and flows to surface streams were near normal. Spring flows have improved but remain below normal. Water levels in most wells in the monitoring program have remained relatively constant over time. However wells that are above or down-gradient of active longwall mining often times show lower water levels. Since mining has commenced in the Box Canyon Panel area water levels in wells 01-11-1 and RAV 4b, both located down-gradient of active mining have dropped, likely the result of dewatering of the B- Seam. Water levels in wells typically recover to pre-mining levels several months to several years after longwall mining in the area passes. This may be the case at well SOM 76 where water levels are recovering two years after longwall mining in Panel 13 passed. Casings of some wells (SOM- 2H and SOM-16H) have collapsed due the mine-induced subsidence, but these effects have been limited. As the Project's mining operations shift from the west side of the Project area to the east side, the Project's hydrologic monitoring system must be revised accordingly. A hydrologic monitoring system must be established to focus on the areas of current mining activities (east side) and in future mine areas, so that adequate baseline data can be collected. Table 12 summarizes the recommended hydrologic monitoring system modifications. The Project's current monitoring program is adequate with the exception of flow measurements at the Upper and Lower Deep Creek stations and upper Dry Fork. The Deep Creek stations need to have a direct means of measuring flow other than a rating curve for the general channel geometry. Direct flow could be measured using a permanent or portable flume or similar devices. The continuous flow measurement instruments (pressure transducers and data loggers) would need to be recalibrated to the specific flow measurement device. The upper Dry Fork monitoring site has 37 September 2004 HydroGeo, Inc.