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Jerry Koblitz Page 4 August 27, 1998 upstream of all New Elk mining activities and PRS-4 is located downstream of all mining activities, yet upstream of the confluence of the North Fork of the Purgatoire with the Middle Fork. During low flow conditions, flow at the downstream site (PRS-4) is almost always higher than the upstream site (PRS-1). During other times of the year, flow at PRS-4 is less than PRS-1, possibly due to irrigation take out between these two sites. Conductivity is nearly equal at the two sites, PRS-1 (213 umhos/cm) vs. PRS-4 (224 umhos/cm). Pond discharges were very infrequent and of short duration. Pond effluent, when it occurs, is monitored through self reporting and sampling in accordance with the approved point source discharge permit issued through the Colorado Department of Public Health and the Environment. Ground Water Quantity and Quality Flooding of the mine workings continues at a rate close to what is estimated in Exhibit 8 of the permit application. Water levels in the three monitored locations which penetrate the mine workings have increased in elevation an average of 7 feet over 1996 levels. Alluvial water levels, as indicated in wells PAW-1 upstream of the mine and PAW- 9 downstream of the mine continue to show normal variation due to seasonal influences and no impact to alluvial water levels can be identified at this time. Alluvial water quality remains slightly more saline than the surface water, which recharges the alluvium, but is within an acceptable range for all known and current uses. Quality changes due to mining are not apparent. Spring and Seen Survey The spring and seep survey was conducted in August this year in accordance with the approved plan. Spring flows have been variable over the historic monitoring period and are generally small, having only a localized importance to wildlife or livestock. There is no evidence at this time that mining activities have reduced or impacted the springs in the area. Summary