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DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />Bill Ritter, Jr. <br />Governor <br />July 16, 2009 <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: Peabody Sage Creek Mine (Permit No. C-2009-087) <br />New Permit Application <br />Updated Response <br />Dear Mr. Kaldenbach: <br />Harris D. Sherman <br />Executive Director <br />Dick Wolfe, P.E. <br />Director/State Engineer <br />e?c?amatt9n, <br />J' <br />C.(?i?i?? end <br />The Division of Water Resources has reviewed the Peabody Sage Creek Mine (PSCM) <br />(Permit No. C-2009-087) application for a new permit. The application proposes to <br />conduct underground coal mining operations on land approximately 9 miles south and <br />east of Hayden. The new permit will allow the development of room-and-pillar <br />underground mine workings and surface facilities, in advance of future long-wall <br />workings that may be proposed in a subsequent revision to this new permit. The <br />applicant proposes the installation of one or more wells, a storage tank and distribution <br />system to provide potable water for the PSCM operations. In addition, two new sediment <br />ponds and associated diversions are also proposed as surface facilities for the <br />operations. <br />The applicant proposes to divert and store water within this stream system. These <br />activities could result in depletions (i.e., consumptive and evaporative losses) to the <br />stream system that may impact downstream senior water right holders. Currently, water <br />is available within the stream system; however, there is no guarantee the water will <br />remain available. In such a case, the applicant may be required to obtain a State <br />Engineer's approved substitute water supply plan or water court approved augmentation <br />plan. At this time, the SEO has no objection to the application. <br />If you have 'any: questions, feel free to contact me at this office at (303) 866-3587. <br />Sincerely <br />Mark J. Van r i, PhD, PE, PG, BCEE, DWRE <br />Water Resources Engineer <br />cc: file <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.waten state. co.us