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CLINTON DITCH AND RESERVOIR COMPANY <br />Clinton is the owner and operator of Clinton Gulch Reservoir and the water rights <br />decreed to that facility. Clinton's current shareholders consist of the Town of Breckenridge; <br />Copper Mountain Metropolitan District; Powdr - Copper Mountain, LLC; the Town of Dillon; <br />Dundee Realty U.S.A., Inc. d/b/a Arapahoe Basin Ski Area; the Town of Silverthorne; the Board <br />of County Commissioners of Summit County; Vail Summit Resorts, Inc. d/b/a Breckenridge Ski <br />Resort; Vail Summit Resorts, Inc. d/b/a Keystone Resort; and Winter Park Recreational <br />Association. Clinton Gulch Reservoir is a critical water supply source for the water users and <br />water providers in Summit County and the largest ski resort in Grand County. <br />Clinton Gulch Reservoir was decreed by the District Court in and for Water Division No. <br />5, State of Colorado, in Case Nos. W-2559 and 92CW65 for 4,250 acre feet for industrial, <br />domestic, municipal, irrigation, recreation, fish and wildlife propagation, snowmaking and <br />augmentation uses, together with the refill right decreed in Case No. 92CW65. The source of <br />water for Clinton Gulch Reservoir is Clinton Creek, tributary to Ten Mile Creek, tributary to the <br />Blue River. <br />1. Modifications in terrain in the Clinton Creek drainage might impact water yield <br />and water quality. <br />The proposed modification of the Climax Mine site, particularly in the area near the <br />reservoir, should only be permitted with due regard and protection for both the quality and <br />quantity of the water in the Clinton Creek watershed. Changes in the land contour or any other <br />aspect of the activities authorized by the permit amendment that result in less yield to Clinton <br />Gulch Reservoir, result in increased sedimentation in the reservoir or allow pollutants to enter <br />the reservoir would injure Clinton and its shareholders. <br />2. Mining activities may adversely impact the movement and quality of groundwater <br />that is tributary to Clinton Gulch Reservoir. <br />Expansion of the open pit mine, overburden storage facilities, tailings ponds, and <br />Robinson Lake could affect groundwater conditions in and around Clinton Gulch Reservoir, and <br />could impact the stability of the dam that forms Clinton Gulch Reservoir. In addition, hazardous <br />chemicals used in mining operations could contaminate the groundwater system, which in turn, <br />could contaminate the reservoir. Conditions should be included in the permit to prevent adverse <br />impact to the groundwater resources in the area around Clinton Gulch Reservoir <br />In summary, Clinton Gulch Reservoir and its supply sources are intertwined with the <br />Climax Mine operation. The proposed amendment requests permission to restart major mining <br />39445 2