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3.0 Surface Water Information The data collected from Oxbow Mining, LLC (OMLLC) surface water monitoring sites along with the results of laboratory analyses are presented in Exhibit 1-Surface Water Information. The following site discussions are presented from west to east through the OMLLC property. H-1 -Lower Hubbard Creek Surface water monitoring point H-1 is located on Hubbard Creek, where this perennial stream flows through the western edge of the OMLLC permit area associated with the abandoned but reclaimed Somerset Mine facility area and Blue ribbon Mine Facility. Until 1996, the most recent surface activity in the area was the reclamation of the lower Hubbard Creek site. In 2005 the Hubbard Fansite was permitted and constructed. The H-1 site is utilized as a down gradient site to detect potential changes in stream quality or quantity as a result of mining activities. Mining activities include both the OMLLC Hubbard Creek facilities and the Blue Ribbon Mine facility. Hubbard Creek point H-1 was monitored in accordance with the permit requirements. Hubbard Creek is a stream that also serves as a trans-basin diversion from the Terror Creek reservoir during the summer irrigation season. Hubbard Creek continues to exhibit summer flow volumes in response to the management of upstream diversions. No significant difference in the 2005 monitoring results from baseline or historical measurements was noted. B-1. B-2 and $-3 - Beaz Creek BB=1 -- Surface water monitoring point B-1 -Lower Bear Creek, an ephemeral drainage, is monitored to verify that the Elk Creek mine does not have an adverse affect on the quality of runoff in the drainage. During 2005 there was, again, only minimal to no flow at B-1 after the conclusion of spring snowmelt. No additional retreat mining of D seam occurred under the Beaz Creek drainage during 2005. The status of the Bear Creek road is assessed as part of ongoing subsidence monitoring. No adverse effects as a resuk of mining activities were observed to have occurred to the Bear Creek road in 2005: From a historical perspective it is important to remember that the Bear Creek drainage was also undermined by extensive historic mine workings in the B and C seam of the Somerset Mine. B-2 and B-3 -- In accordance with the Elk Creek Federal coal lease COC-61357 "Water Replacement Plan" stipulation, surface water monitoring points B-2 and B-3 are monitored for flow twice annually after tributary flow from side channels between the two points has ceased. B-2 corresponds to a mid-Bear creek location roughly corresponding to the south limit of the Elk Creek Federal Coal lease. B-3 corresponds to an upper Bear Creek location roughly • corresponding to the north limit of the Elk Creek Federal Coal Lease. Generally, due to the ephemeral nature of Beaz Creek and the propensity for flows to quickly cease by late June, flow measurements are most often obtained in mid-June. 6