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WESTERN <br />FUELS <br />ASSOCIATION <br />INC. <br />7fieNational <br />Poet supply <br />cooperaCtve <br />Apri12, 2008 <br />Mr. Michael Boulay <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />ppR 0 ~ 200 <br />pivis-ar- ei ~~csa gty n, <br />Mining and <br />Re: New Horizon Mine (C-81-008), TR-56 <br />State Engineer Comments on As Built Ponds 11 and 13 <br />Dear Mr. Boulay: <br />I am responding to .your letter of March 7, 2008 to Ross Gubka regarding the referenced <br />matter. You had attached a letter from Mark Vanarelli of the Office of State Engineer <br />with your letter requesting sufficient information in support of the TR-56. <br />I called Mr. Vanarelli on March 19 to discuss his concerns. I emphasized the fact that <br />Ponds 11 and 13 were already approved for construction and that WFC was submitting <br />the as built information as required under the permit: I also mentioned that the Water <br />Court had already decreed conditional water rights associated with these ponds. He asked <br />me to send him the water right information. He was also concerned if the ponds would <br />intercept ground water in which case well permits would be required. I told him the <br />ponds were built mainly to intercept runoff water at the mine and were not expected to <br />intercept any ground water. <br />Please note the following: <br />1. I have attached a copy of the Water Division No. 4 Court decree (Case No. <br />O1CW114) awarding Western Fuels-Colorado (WFC) conditional water rights to <br />Ponds 8 through 15. WFC has been awarded 4.40 acre-feet of conditional water <br />right for Pond 11 and 6.06 acre-feet of conditional water right for Pond 013. <br />2. The ponds have been designed under the DRMS design criteria. <br />3. The ponds are not intended to intercept ground water. <br />4. As legally required, any injury to senior decreed water right holders will be <br />mitigated by releasing water to the tributaries of San Miguel River. <br />PO Box 33424 Denver, CO 80233-3424 Telephone 303/254-3070 Fax 303/254-3079 1100 West 116th Avenue Westminster, CO 80234 <br />