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DEPARTMENT OF NATURAL RESOURCES <br />?yy <br />\T ? S-0Vp N ??? ?? <br />?1876i <br />DIVISION OF WATER RESOURCES <br />September 8, 2008 <br />Tom Kaldenbach <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: West Elk Mine (Permit No. C-1980-007) Division of Reclamation, <br />Mining and Safety <br />Permit Revision Application No. 14 (PR-14) <br />Methane Drainage Wells for Longwall Panels E2-E12 <br />Dear Mr. Kaldenbach: <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Dick Wolfe, P.E. <br />Director <br />The Division of Water Resources has reviewed the West Elk Mine (Permit No. C-1980- <br />007), Permit Revision Application No.112 (TR-112). The revision proposes to drilling <br />methane drainage wells to the mine's underground workings in longwall panels E-2 <br />through E-12. <br />Methane drainage wells are not "wells" as defined in the Water Right Determination and <br />Administration Act and the Ground Water Management Act (Water Rights Acts), and <br />operators do not need to obtain a water well permit to withdraw water from these wells <br />as part of the extraction process. However, if water from an oil or gas well is put to' <br />beneficial use other than those uses allowed under Colorado Oil and Gas Conservation <br />Commission (COGCC) Rule 907, then the Division of Water Resources has certain <br />jurisdiction over the water and the well, and the well is subject to the Rules and <br />Regulations for Water Well Construction, Pump Installation, and Monitoring and <br />Observation. Hole/Well Construction (2CCR402-2). The COGCC Act grants certain <br />authority to COGCC to promote oil and gas conservation, and rescinds any authority of <br />any other agency as it relates to the conservation of oil and gas. Produced water from <br />an oil or gas well is considered a waste product by operators and must be properly <br />disposed of to prevent adverse environmental impacts. Pursuant to COGCC rules, an <br />operator may dispose of such water in any of the following ways: 1) inject into a <br />disposal well; 2) place it in a properly permitted lined or unlined pit for evaporation and/or <br />percolation; 3) dispose the water at a permitted commercial facility; 4) dispose of the <br />water by road spreading on lease roads outside sensitive areas for produced waters; 5) <br />discharge the water into waters of the state in accordance with the Water Quality Control <br />Act and the rules and regulations promulgated thereunder; 6) reuse the water for <br />enhanced recovery, recycling, and drilling; or 7) mitigation to provide an alternate <br />domestic water supply to surface owners within the oil and gas field. <br />RECEIVED <br />SEP 0 9 2008 <br />Office of the State Engineer <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 <br />www.water.state.co.-us