2008-09-29_PERMIT FILE - C1981019A (6)

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RULE 2 PERMITS Groundwater Uses General Area Groundwater uses in the general and permit areas of the Colowyo mine are minimal and of low volume. Questions were raised in the past concerning well yields within four miles of the mine site. At that time the Colowyo Coal Company undertook a program to investigate reported yields based on the Colorado State Engineer's records. A search of the State's files revealed that only three wells within four miles of the mine site have reported well yields of 50 gal./min. The remaining wells have reported yields of less than 16 gal./min; most of the wells have reported yields of less then 7 gal./min. The well yields were not field checked to determine actual use or rate of use. There are no wells that have reported yields in excess of 50 gal./min. Very little groundwater resource development has taken place in the Axial area. There are a few relatively shallow, low-yield wells on or near the leasehold area that were dug for domestic purposes. Permit Area Groundwater uses in the mine area are also limited due to the depth to water and its limited overall availability. Colowyo has developed two wells on the mine area to supply a portion of the domestic needs. The two deep wells, Taylor Creek Nos. 1 and 3 are located in Section 33, T4N, R93W, and in Section 4, T3N, R93W respectively. Taylor Creek No. 1, completed to a depth of 825 feet in the Williams Fork Formation, produces 40 gpm with a static water level of 110 feet. Taylor Creek No. 3, completed to a depth of 2,284 feet in the Iles Formation, produces 20 gpm with a static water level of 135 feet. The information collected from the Colowyo Mine area indicates that groundwater is very limited, even to depths significantly below mining activities. This conclusion is supported by the depths of the potable wells, Taylor Creek No. 1 and Taylor Creek No. 3, necessary for sustained production. Further evidence of lack of significant groundwater resources in and adjacent to the mine area is that residents in the general area haul drinking water from Craig or Meeker. Groundwater is not currently planned for industrial purposes such as watering haul roads or dust control in the loadout facilities. Water for these purposes will be supplied by Wilson Reservoir located in Section 13, T4N, R93W. See Map 32 for the location of the reservoir and pipeline for conveyance to the mine area. Summary of Groundwater Conditions The coal beds of the Williams Fork Formation that are to be mined are at a high elevation and are truncated by the mining operation to the north, Goodspring Creek to the east and Taylor Creek to the west. As a result, the coals and upper sandstones are drained. Perched aquifers exist in the coals and sandstones, but exhibit little lateral or vertical continuity. Cascading waters from perched zones were encountered during drilling of exploration holes on the lease. No substantial quantities of water were encountered through the mine section or in the sandstones below the coals that are to be mined. The Trout Creek Sandstone of the Iles Formation is the first major, regional aquifer that can be recognized on the mine property. The sandstone occurs approximately 800 feet beneath the lowest coals to be surface mined. Rule 2 Permits 2.04.7-11 Revision Date: 6/23/08 Revision No.: MR-91