2009-03-31_REPORT - C1980006 (3)

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Kerr (Marr) Mine - 2008 Annual Hydrology Report 3.0 MONITORING AND ANALYSES Water monitoring requirements during the 2008 water year (Oct. 2007 through Sept. 2008) were superseded by TR-23 which was approved October 15, 2007. Accordingly, ground water (monitoring wells) sampling ceased at the mine site but surface water (ponds) monitoring continued in accordance with requirements of the Colorado Water Discharge Permit. KCC has submitted a request to the Water Division to terminate Discharge Permit No.850037 and is awaiting a decision. Ground water and surface water monitoring continues at the Loadout facilities until release of that site becomes appropriate. The required monitoring during the 2008 water year was completed in accordance with the permit requirements according to the general schedule as listed below. All field data and sample collection for the water year was conducted under the direction of James Mossman for Kerr. All sample analyses were performed by ACZ Laboratories, Inc. of Steamboat Springs, Colorado. • Alluvial Groundwater - Quarterly Monitoring (except winter) - AP-1 and AP-2 • Surface water - Monitored weekly from March through June, then monthly through September. Field and laboratory data are included in Appendices A through D. Locations of the monitoring stations and wells are shown on Map 1, Mine Area Monitoring Stations, and Map 2, Loadout Area Monitoring Stations. 4.0 MINE AREA GROUNDWATER (WATER TABLE) Deep groundwater occurs under water-table conditions in two primary water-bearing zones in the mine area; the Sudduth Coal Seam, and the undifferentiated overlying overburden materials. The Sudduth Coal Seam was monitored at well 79-61. Subsequently, the monitoring wells at the mine site were sealed and reclaimed during 2008. The 79-61 well is located just north of the historic Pit 1, along Bush Draw in the undisturbed coal seam. The mine area overburden wells are designated 79-1, 79-2, and 79-3. These wells were located at the south, middle and north sections of the historic 720 Pit, respectively, adjacent to what was formerly the east crest of the pit. Spoil monitoring well SP-01 was installed in the north end of the 720 Pit area in 2001 and monitoring was initiated in 2002. The Spoil Monitoring Well (SP-01) was converted to a stock watering well during 2008. The general locations of the former and current monitoring points are presented on Map 1, Mine Area Monitoring Stations. Historical groundwater monitoring data for the coal seam and overburden wells have shown that the characteristics of the water-table groundwater system, in terms of quality and quantity, have been consistent and stable, such that monitoring at these locations was deferred until the last two years preceding final bond release (2005 and 2006 water years). Monitoring in 2007 was in excess of the plan due to the delay in the bond release request submittal. The water levels measured in 2007 were consistent with the previous water levels (1995-2001, 2005 and 2006). Kerr Nline/AJAR 2008 Page 2