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Hydro-Environmental Solutions, Inc. <br />hydrology, water quality and environmental consulting services <br />November 7, 2007 <br />Mr. Daniel Hernandez <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Hayden Gulch Loadout, Permit C-92-081 <br />Monitoring Well HGDAL-2 Abandonment <br />Proof of Compliance <br />Dear Mr. Hernandez: <br />In accordance with Rule 4.07.3(3), this letter report has been prepared on behalf of Hayden Gulch <br />Terminal, Inc. (HGTI) and serves as proof of compliance for abandonment of monitoring well <br />HGDAL-2 at the Hayden Gulch Loadout, Permit No. C-92-081. The requirements of Rule 4.07.3(3) <br />are presented in italics, followed by HGTI's response. <br />(a) Location of drill hole as spotted accurately on a topographic map; <br />Response: The attached figure, a 1"=400' scale map adapted from an approved PAP exhibit, shows <br />the location of monitor well HGDAL-2. <br />(b) Depth of drill hole; <br />Response: The bottom of monitor well HGDAL-2 was 22.2' feet below ground surface. <br />(c) Surface elevation of drill hole; <br />Response: Monitor well HGDAL-2 was at 6,384.4 feet above mean sea level (amsl). <br />(d) Intervals where water was encountered during drilling activities; <br />Response: Monitor well HGDAL-2 was drilled and completed in approximately 1986 by H-G Coal <br />Company, the previous owner/operator of the Hayden Gulch Loadout. HGTI has been unable to <br />locate a completion report, that records if, and where water was encountered during drilling, in <br />internal project files or the Division of Water Resources database. However, historic data indicate <br />average water levels were approximately 4 - 5 feet below ground surface (elevation of about 6,380 <br />feet amsl). Consequently, HGTI assumes water would have been encountered during drilling <br />activities within a few feet of the ground surface. <br />(e) Diameter of drill hole; <br />Response: As noted above, there is no information about drill hole completion and, consequently, <br />the diameter is unknown. However, the monitor well was constructed with 4-inch diameter PVC <br />Pipe. <br />P.O. Box 772996 <br />5710`h Street, Suite B <br />Steamboat Springs, CO 80477 <br />970-871-6125 * 970-871-6196 (fax) <br />