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pond inlets, discharge structures and embankments are stable at all pond locations. Pond side slopes <br />and surrounding areas are vegetated and stabilized. The 004, 008 and the PECOCO sediment ponds <br />were included in the Phase II bond release request acreage because they are approved to remain as <br />permanent impoundments. No problems were noted at the permanent sediment pond locations during <br />the Phase II bond release inspection (see previous discussion under Condition of Sediment Ponds). <br />Sedimentation Ponds 004, 008, and the PECOCO Pond shown in the PAP on Exhibit 7-19, <br />Postmining Drainage Control and Exhibit 13-2A, Postmining Topography and Permanent Features <br />will remain as permanent structures. SCC has submitted permanent impoundment demonstrations to <br />DRMS for all permanent ponds. SCC also submitted letters from all appropriate landowners <br />requesting that the corresponding ponds be left in place as permanent features. The permanent <br />impoundment demonstrations along with As-Built Certifications for the permanent sedimentation <br />ponds (002, 003, 004, 008, and PECOCO Pond) were approved with Technical Revision No. 37 on <br />September 12, 2006. <br />The potential exists that the permanent sediment ponds may be out-of-priority at some time with regard <br />to water rights, and that absent a decreed plan for augmentation, SCC will be required to either bypass <br />or release out-of-priority inflows, including lowering the pond water-level elevation to account for out- <br />of-priority inflows that replace evaporative losses. In cooperation with DRMS and the Office of the <br />State Engineer, Division of Water Resources, SCC has committed to installing pump's at the Pecoco <br />Pond and Ponds 002 and 003, and providing a flexible siphon pipe at both the 004 and 008 <br />impoundments to release out-of-priority inflows, if and when required. The pumps and siphon pipes <br />will be maintained in an operable condition. The State Engineer has the authority to order the <br />installation of low-level outlets capable of releasing all storage from the structures or;breech of the <br />structure(s) to assure that senior appropriators receive the water to which they are entitled by law. As <br />stated in the permanent impoundment demonstrations for the PECOCO Pond and Ponds 002 and 003 <br />(Appendices 7-6g and 7-10 of the PAP), SCC will fully inform private landowners of the State <br />Engineer's authority in this regard. (Ponds 004 and 008 are within State of Colorado owned land.) <br />Stock Ponds <br />SCC has thirteen permitted stock ponds at the Seneca II Mine, established primarily for livestock <br />grazing and secondarily as wildlife habitat. Documentation pertinent to permanent impoundment <br />approvals for the listed stock ponds is included within Appendix 13-9 of the approved permit <br />application package. In February 2002 SCC submitted Technical Revision No. 35'to request approval <br />for 12 stock ponds to be retained as permanent structures and also to request a waiver from the <br />quarterly examination requirements for these ponds [Rule 4.05.9(18)]. In June 2003, the 12 stock <br />ponds were inspected to verify the adequacy of the safety demonstration required by 4.05.9(18) and to <br />verify embankment heights and storage capacities (see inspection report dated 06/17/03). SCC has <br />submitted letters from all appropriate landowners requesting that the stock ponds located within their <br />property boundaries be left in place as permanent features. TR-35 was approved in August 2003, <br />approving the following stock ponds to remain as permanent features: T-4, T-8, T-16, T-17, T-20, T- <br />26, T-28, T- 29, T-30, T-31, T-32, and T-33. The locations of the stock ponds are shown on Exhibit <br />7-19 and 13-2A of the PAP. <br />16