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Ms. Angela Bellantoni <br />Apri125, 2007 <br />Page 2 <br />• Vermejo Formation dips to the west and northwest at the mine location and the depth to <br />the Ocean Wave coal seam ranges from approximately 300 to 800 feet beneath the <br />ground surface as illustrated in cross sections A - A' and B - B', presented in <br />Appendices 1 and 2, respectively. We note that during the drilling of the on-site <br />monitoring wells and drilling of a recently constructed water ,supply well (permit No. <br />222887-A), there was very little ground water encountered in the Vermejo formation <br />including the Ocean Wave coal seam. The Vermejo and overlying units have low <br />permeabilities based on information from the on-site core hole and monitoring well data <br />as we as we records and previous studies in the area. As presented in the lithologic <br />logs, impermeable mudstone is present both above and below the Ocean Wave coal seam. <br />The mudstone above the coal ranges in thickness from 12 to 20 feet thick, and although <br />sandstone is present in intervals above the mudstone, it has a very low hydraulic <br />conductivity as indicated from borehole and pumping test data. The boreholes did not <br />penetrate to sufficient depths to determine the thickness of mudstone below the coal, but <br />mudstone was logged beneath the coal in the boreholes. The hydraulic conductivity of <br />the material beneath the coal is probably very low. The impermeable mudstone acts as an <br />aquitard and acts to restrict the vertical movement of ground water between the coal and <br />the overlying and underlying sediments. Accordingly, the primary direction of ground <br />water flow is horizontal. The ground water flow direction is generally from south to <br />north towards the Arkansas River, as presented in Figure 6 of our March, 2006 hydrology <br />report. <br />• The low permeability of the formation material inhibits the flow of ground water in the <br />vicinity of the mine. Accordingly, water level changes resulting from mine dewatering <br />will be isolated to the areas very close to the mine and are not expected to propagate to <br />nearby water supply wells. We note that in our March, 2006 hydrology report, we <br />presented a range of possible inflow values to the mine based on a range of hydraulic <br />conductivity values. Based on the work completed since that initial report, there is <br />evidence that the hydraulic conductivity of the Vermejo formation in the vicinity of the <br />mine, and the corresponding mine inflow, is in the mid to lower range of values presented <br />in Table 4 of that report. <br />Well Inventory and Water Level Drawdown Analyses <br />Although there is not an aquifer present in the Vermejo Formation, low yielding water <br />supply wells have been developed to provide local water supplies, primarily for <br />residential and limited stock and commercial uses. In addition to wells completed in the <br />Vermejo Formation, there are higher capacity wells completed in the alluvium of the <br />Arkansas River and the alluvium of Chandler Creek. The wells completed in the alluvial <br />material are in hydraulic connection with surface water systems including Chandler <br />Creek and the Arkansas River. Conditions in these surface water systems will control <br />water levels in the alluvial material. Water level changes in the Vermejo formation, if <br />they occur, will not alter water levels in the alluvial aquifer systems. <br /> <br />