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Water Information <br />Currently there are 68 acres of exposed groundwater at the Greeley Pit. Upon reviewing the <br />permit file, it was determined the Operator does not have a well permit and temporary substitute <br />water supply plan (TSWSP) or a court approved augmentation plan. The Permittee shall submit a <br />well permit and TSWSP to cover the evaporative depletions that will occur during mining and <br />reclamation activities; a copy of the Operator's well permit application was received on May 27, <br />2010. Since groundwater will be permanently exposed at the site, the Operator will be <br />responsible for obtaining a court approved augmentation plan prior to the Division's release of <br />the site. Currently the Division holds a financial warranty in the amount of $47,000.00. The <br />financial warranty is inadequate and does cover reclamation costs associated with the exposed <br />groundwater. The Division's policy regarding bonding for exposed groundwater has recently <br />been revised; the details of the policy revision are outlined in the `Mining Operations with <br />Exposed Ground water' letter, dated April 30, 2010. During the meeting the Operator stated they <br />would address the unbonded liability of exposed groundwater by purchasing water shares and <br />dedicating them to the Office of the State Engineer (SEO). Therefore, the Operator shall submit a <br />plan detailing how the unbonded liability will be covered. Once the plan is approved by the <br />Division, it will become an enforceable condition of the permit. At a minimum the plan shall <br />include the following information: <br />• Provide a detailed account of the history of exposed groundwater at the Greeley Pit. The <br />account shall specify the area of groundwater which is exempt from the SEO's <br />guidelines (groundwater exposed prior to December 31, 1980), as well as the area of <br />water in which evaporative depletions must be replaced. <br />• Provide a detailed plan specifying the number of shares which must be purchased to <br />cover the evaporative depletions. If the plan will be implemented in a phased manner, <br />then the Operator shall provide a timeline specifying the amount of water shares to be <br />acquired and dedicated to the SEO on an annual basis. The timetable shall provide <br />specific dates by which the water shares for each phase must be dedicated to the SEO. <br />The original decision date for the Technical Revision was May 19, 2010. The Operator submitted <br />a request to extend the decision date by 365 days. The Division has granted a 60 day extension of <br />the decision date; the new decision date is July 18, 2010. <br />If you have any questions, please call me at (303)866-3567 x8116. <br />Sincerely, <br />Michael A. Cunningham <br />Environmental Protection Specialist <br />CC: Tony Waldron, DRMS