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3. Groundwater <br />Since the drill holes did not show groundwater and there are no visible seeps or springs on the <br />hill side to the north of the mining area, groundwater is not expected to be encountered during <br />mining. <br />4. Water Consumption for the Operation <br />Water consumption by the operation will be limited to the dust suppression on haul roads and <br />crushing operation as well as the wash plant. During mining and washing the operation will <br />consume approximately 20,000 gallons per day. Since the mining will only take place a few <br />months of the year, the 21 acre-feet per year allowed in the attached water right should be <br />sufficient. United companies has leased 21 acre-feet of water associated with the Wadlow <br />Pumping Plant water right. Water will be pumped from the Lake 2B Pit east of the Craig Ranch <br />Pit, piped under Highway 141, and used to fill the wash ponds. Since the wash water is recycled, <br />the water lease is sufficient to fulfill consumptive uses. <br />Attached is the Water Lease. <br />Craig Ranch Pit, March 2011 G-3