2008-02-04_PERMIT FILE - C1982056A

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Water handling and treatment facilities are shown on Map 24, Surface Facilities, Fish Creek Borehole/Shaft Area Facilities and Access Road. Ground water inflow to the mine will be pumped from the underground workings to sumps, then from the sumps to the surface through boreholes. The water will be treated to meet effluent limitations on water quality such that downstream water rights will be impaired. The only water right that is likely to be affected is that of the Colorado Yampa Coal Company Area 2 Pit, adjudicated for 20 acre-feet per year absolute, 480 acre-feet per year conditional. Consequently, mitigation of impact to private water rights resulting from underground mining operations should not be necessary. In the unlikely event mining operations are proven to impact private water users, the flow rights mentioned above are available for augmentation of such water sources. The Homestead Ditch can serve as a source of irrigation water for downstream users of water, which has been, contaminated to the extent it no longer serves its intended purpose. Also, a contractor such as Ed's Excavating can be utilized to haul water from Steamboat Springs to the affected Pm'4'~ 9 & 10 Right Gateroad Extension TCC is not anticipating any impacts to the wells listed in Exhibit 6B or shown on Map I to from mining the 9 and 10 Right gateroads. The reason for this opinion is that all the wells are relatively shallow and separated from the mine workings by the Marine Shale. This unit effectively acts as an aquiclude between the mine and overlying sandstone units. Any inflows into the main, which might occur from the mining of the gateroads, would be from the Wadge Overburden, which includes the Wadge Coal. None of the wells listed in Exhibit 6B are completed in this unit. In the unlikely and unanticipated event that anear-surface well was ever impacted by the mining operation, there are alternative water supplies that could be used for augmentation. The sources of water include: 1) hauling water from Steamboat Springs, 2) drilling a new well, 3) repairing the existing well. The first option would be utilized until either the existing well was repaired or replaced. EASTERN MINING DISTRICT Table 12, Eastern Mining District Summary of Surface Water Rights, has been updated to include two irrigation ditches adjacent to the Life of the Mine Permit area. These ditches are located in section 36, T6N, R86W. The ongoing monitoring work conducted by Twentymile Coal Company and Colorado Yampa Coal Company (refer to Permit C-81-071) indicates there are no impacts of the permit boundary. Twentymile is not predicting any additional impacts to the quality or quantity of water in Trout Creek. The only adjudicated water supply system that could be impacted by mining in the Eastern Mining District is that owned by the Ashley's. In the event this occurred, Twentymile would have water hauled to them from Steamboat Springs until a permanent system could be reestablished. Twentymile understands that it would be responsible for replacing their current system if it is damaged. In the event that TCC's mining activities caused a loss of water from the surface streams so that senior downstream users placed a call on the system, the mine has adequate water rights to mitigate this loss. If this occurred during the irrigation season, Cyprus could stop flow through any of its headgates and allow the water to move downstream. If additional water were required, TCC could have water discharged from any of the large permanent impoundments that surround the mine. Also during this time, TCC would continue to discharge from the mine, which would be adding water to the system. I Please refer to Table 9, Summary of Ground Water Rights, and Table 12, Summary of Surface Water Rights, fora listing of the water rights controlled by Cyprus. u APPRG~I~D APR ~ 4 2000 Permit Renewal No. 3 2.04-39 4/1/99