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STt~TE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />7313 Sherman St., Room 215 <br />Denver, Colorado 00203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832A106 <br />December 27, 2005 <br />Mr. Daniel E. Bear <br />Bear Coal Company <br />P.O. Box 1754 <br />Paonia, Colorado 81428 <br />RE: Bear No. 3 Mine, Permit No. C-81-033, Beaz Coal Company <br />2004 Annual Hydrology Report, Adequacy Review <br />Deaz Mr. Beaz: <br />COLORADO <br />DIVISION O F <br />MINaRALS <br />GEOLOGY <br />Rat ovens <br />Goverrror <br />Russell George <br />EaeMive Dinsttor <br />Rorald W. fattany <br />Division Director <br />Natural Resource Trustee <br />The Colorado Division of Minerals and Geology (Division) has finished its review of the 2004 <br />Annual Hydrology Report (AHR) submitted by the Beaz Coal Company (BCC) for the Bear No. <br />3 Mine, There is nothing in the data that would indicate that the mine site drainage and <br />dischazges are negatively affecting the North Fork of the Gunnison River. In addition, the <br />predictions in the Probable Hydrologic Consequences section of the permit application are borne <br />out by the 2004 hydrologic data results. <br />However, the Division notes that there are several deficiencies in the required hydrologic <br />sampling for 2004: <br />As noted on page 2 of the 2004 AHR, not enough water was available to do full suite <br />analyses for alluvial wells AA-1 and AA-3. <br />2. The field and laboratory analyses for the North Fork of the Gunnison River were <br />performed in August and December, rather than in June and December, as required on <br />permit application page 2.04-30. Please adjust for future AHRs. <br />Dissolved oxygen and chlorine were not sampled in the August full suite monitoring of <br />the North Fork of the Gunnison River, as required on page 2.04-30b of the permit <br />application. Please explain. <br />4. Conductivity and total suspended solids (TSS) were not analyzed in August for the <br />upstream station on the North Fork of the Gunnison River, as shown on page 3 of the <br />2004 AHR. Please explain. <br />5. On page 8 of the 2004 AHR, BCC states that monitoring of NPDES discharge point 001 <br />was discontinued in August of 2004 because BCC believes that the water comes from a <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />