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2.04.7 - HYDROLOGY DESCRIPTION <br />It is anticipated that the King II Mine will have little impact on <br />groundwater systems locally or regionally and its impact on surface <br />hydrology will be low. Operations within the Menefee coal seam are not <br />expected to disrupt aquifers, streams, water systems, or the watershed <br />(up -slope areas of the mine site). Hydrologic data obtained from the <br />existing King I Mine workings, core drill holes in the existing project area, <br />and other research studies predict that the mining operation will have a <br />negligible impact on groundwater of the permit and adjacent area and <br />minor impact to surface water of the area (Appendix 4). <br />GROUNDWATER INFORMATION <br />Exploration drilling and reconnaissance of the permit area have not <br />revealed a significant local or regional groundwater aquifer above or <br />below the coal seam to be mined. The deeply dissected nature of the <br />topography of the permit area and relatively flat and limited extent of the <br />surfaces of the drainage basin upper surfaces limit the aerial extent of <br />any aquifer and the potential for recharge to any aquifer in the area. <br />AQUIFERS <br />The King I Mine and the King II Mine are not in a major groundwater <br />recharge area. Research shows this portion of the San Juan Basin has <br />had very limited ground water development. Most of the wells in the <br />general area have been completed in the unconsolidated alluvial gravels <br />and terrace deposits of the La Plata River and its tributaries (including <br />Hay Gulch), or in consolidated aquifers further south (down -dip) in the <br />basin. Two formations, the Cliff House Sandstone and the Menefee <br />Formation are important and relative to mining operations. These are <br />further discussed below. The underlying Point Lookout Sandstone will <br />not be affected by the mining operations. <br />Cliff House Sandstone <br />This unit comprises the cap rock to the dip slopes of the area. Based on <br />information provided by the Menefee Land Company exploration drilling <br />program for a proposed coal mine bordering the King I Mine, the <br />sandstone is not saturated and is above the potentiometric surface in the <br />immediate project vicinity. No water was encountered in any drill hole <br />during this program at a level above or in the Menefee seams. All wells <br />in this unit were dry in the Cliff House formation. <br />As these wells are located across Hay Gulch, there can be no hydrologic <br />GCC Energy, LLC King II Mine <br />Section 2.04.7 <br />Page 1 October, 2008 <br />Pz - / <br />