2010-12-10_REVISION - C1980004 (2)

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---? ?-?7 DEPARTMENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES Bill Ritter, Jr. Governor Mike Kin ExecutivNirector Wolfe, P.E. _C or/StateEngineer December 10, 2010 DEC 10 NAB 7lviaar o, zc?° Michael Boulay, Environmental Protection Specialist Division of Reclamation, Mining and Safety _ 1313 Sherman Street, Room 215 Denver, Colorado 80203 Re: McClane Canyon Mine (Permit No. C-1980-004) Permit Revision Application Dear Mr. Boulay: The Division of Water Resources has reviewed the McClane Canyon Mine (Permit No. C-1980-004) permit revision application. The application proposes to increase production to 500,000 clean tons of coal per year and build a cleaning plant and associated facilities on land located approximately 19 miles north of Loma in Garfield County. The State Engineers Office (SEO) offers the following comments on this project: The applicant proposes to either use the water collected from storm/surface/mine water drainage or store it in a sediment pond for later release to the East Salt Creek stream system. Currently, the stream system in this location is not overappropriated, however, if the stream system at this location becomes overappropriated, the storage and use of any surface or ground water will be subject to administration. Additionally, If the construction of any sediment pond exposes ground water, the pond must be backfilled immediately until a well permit issued pursuant to CRS 37-90-137(2), allowing the exposure of ground water in a pit, is obtained from the State Engineer. The applicant identifies the use of existing monitoring wells in their 2009 hydrology report. The SEO has no records of permits for these wells. If these wells were constructed as monitoring holes they must be plugged and abandoned within one year of completion or else permitted as monitoring wells with the SEO; if these wells were completed without a valid monitoring hole notice or well permit the applicant needs to take immediate action to plug or permit the wells as monitoring wells. All future wells drilled for monitoring/testing uses should be permitted through the SEO either by notice of intent to drill monitoring holes or by application to drill a monitoring well. Last, the applicant, in their 2009 hydrology report, states that portions of McClane Creek are being temporarily diverted. If, at any point, construction or operation activities of this project affect the flow of a stream or ditch we recommend that the applicants consult with the local Office of the State Engineer 1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 www.watenstate.co.us