2010-02-24_REVISION - C1996083 (2)

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2.04.7 Hydrology Description • (1)(a)(i)(ii)(iii) and (iv) Method of study: To establish baseline data, 13 drill holes were converted into monitoring wells during the 1982 and 1983 exploration drilling campaign. After drilling, each hole was cased with 4 -inch P.V.C., flush joint pipe from the surface to perforated pipe which was located within the strata where data was desired. See monitoring hole completion drawings for details on each hole completed presented in Volume III, Exhibit 3. Of the 13 holes completed, 5 were completed in the overburden above the "D" Seam, 5 in the "D" seam, one in the overburden above the "B" Seam, 1 in the Rollins Sandstone formation and 1 in alluvium. The aerial extent of the groundwater investigation is generally bounded by Stevens Gulch Creek on the West, Hubbard Creek on the East, and the North Fork of the Gunnison River on the South, comprising approximately 8500 acres. For actual monitoring locations see Map 9, Hydrologic Monitoring Location. The groundwater study was initiated by Coors Energy Corporation in the Spring of 1982. This investigation produced a preliminary map showing hydrologic feature locations and monitoring data for these features during 1982 and 1983. In the spring of 1995 the preliminary map was used by the • Operator to locate the existing hydrologic features and monitoring was resumed after the features were substantiated in the field. During the fall of 1997 the Operator's technical staff examined the surrounding area and identified numerous additional ponds and springs. The Operator believes these field programs were comprehensive and thorough in terms of assessing the surficial hydrologic regime of the entire permit area and the field data obtained and compiled to be accurate and reproducible, within acceptable limits. The Operator considered seeps and springs synonymous during the hydrology investigation. Ponds were presumably recharged by colluvial seepage and as such no quality information is obtained forthe ponds unless they are discharging. Within the permit area seeps are common, especially where colluvial material has been excavated to form storage ponds or roads. Seeps are also common at the toe of colluvial material where the material lies within a defined drainage. Seeps are presumably important in maintaining discharge into storage ponds. Typical flows are approximately less than five gallons per minute and most flows infiltrate back into the ground before reaching a stream. The Operator owns seven springs located within the permit boundary that are decreed water rights shown on Map 23 - Water Rights Location. See the N following table. The J & M Springs & Pipelines are claimed for domestic and stock watering purposes. Water right numbers 1 and 3 are decreed for 4 PR -12 2.04-28- 02110