2009-03-23_REPORT - C1981022 (2)

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B-2 and B-3 -- In accordance with the Elk Creek Federal coal lease COC-61357 "Water Replacement Plan" stipulation, surface water monitoring points B-2 and B-3 are monitored for flow twice annually after tributary flow from side channels between the two points has ceased. B-2 corresponds to a mid-Bear creek location roughly corresponding to the south limit of the Elk Creek Federal Coal lease. B-3 corresponds to an upper Bear Creek location roughly corresponding to the north limit of the Elk Creek Federal Coal Lease. Generally, due to the ephemeral nature of Bear Creek and the propensity for flows to quickly cease by late June, flow measurements are most often obtained in mid-June. BEAR CREEK FLOW INFORMATION Date Site B-2 Site B-3 n U June 10, 2003 0.25 cfs 0.21 cfs June 16, 2003 0.097 cfs 0.088 cfs June 15, 2004 0.02 cfs 0.041 cfs June 22, 2004 0.0 cfs 0.0174 cfs June 15, 2005 1.036 cfs 1.085 cfs June 30, 2005 0.39 cfs 0.13 cfs June 7, 2006 0.047 cfs 0.033 cfs June 13, 2006 Trace flow Trace flow June 15, 2007 0.21 cfs 0.34 cfs June 28, 2007 Trace flow Trace flow June 18, 2008 1.29.cfs 0.72 cfs June 25, 2008 0.49 cfs 0.67 cfs The information is collected in order to aid in analyzing 1) potential water depletions and 2) potential for injury to any Bear Creek water rights. The sampled Bear Creek flows are very minimal and typically variable. Analysis of the data, as well as subsidence monitoring and observations in the field, suggests no anomalies nor any indication of adverse effects attributable to mining activities. E-1- Lower Elk Creek Surface water monitoring point E-1 - Lower Elk Creek, an ephemeral drainage, is monitored as a down gradient site to verify that the Elk Creek mine and the surface facility located at Somerset does not have an adverse affect on the quality of runoff in the drainage. During 2008 there was, again, minimal stream flow at E-1 after spring snowmelt. An analysis of the limited data suggests there is no adverse impact of the Elk Creek mine to Lower Elk Creek. E-2- Upper Elk Creek Surface water monitoring point E-2 - Upper Elk creek, an ephemeral drainage, is monitored to verify that the Elk Creek mine does not have an adverse affect on the quality of runoff in the drainage. In addition, the site will serve as an up-gradient site to monitor Elk Creek prior to entering the OMLLC surface facility. During 2008 there was, again, minimal flow at E-2 after 7