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DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />November 23, 2010 <br />Marcia L. Taivitie, Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Melt /EeD Go Governor <br />jr. <br />Mike tive Di <br />NOV 2 3 2010 rector <br />Dick Wolfe, P.E. <br />Dr/wail w, t,ULti,ir liar 17itxetort5l�te Engineer <br />IRO and Sivy <br />Re: NewHorizon North Mine (Permit No. C- 2010 -089) <br />New Permit Application <br />Dear Ms. Talvitie: <br />The Division of Water Resources has reviewed the New Horizon North Mine (Permit No. C -2010- <br />089) application for a new permit. The application proposes to conduct surface coal mining operations on <br />land located approximately 2.5 miles northwest of Nucla In Montrose County. The State Engineers Office <br />(SEO) would like to express several concerns with the project. <br />The applicant proposes to use sediment ponds for drainage of storm/surface /pit water. Currently, <br />the stream system in this location Is not overapproprlated, however, If the stream system at this location <br />becomes overapproprlated, the storage of surface water will be subject to administration. If the <br />construction of any sediment ponds exposes ground water, the pond must be backfilled Immediately until <br />a well permit Issued pursuant to CRS 37- 90- 137(2), allowing the exposure of ground water in a pit, Is <br />obtained from the State Engineer; This applies to water In any mining pits as well. <br />The applicant proposes to drill a new well on site to provide the facility with water for showers, <br />sanitation, drinking water, vehicle washing, and for fire water back up. A valid permit must be obtained <br />through the SEO prior to the drilling of this well. Though the stream system at this location is not currently <br />overappropriated, the use of the well along with any out of priority surface water diversions will be subject <br />to administration by the Division Office if the stream system in this location becomes overapproprlated. If <br />this occurs the well will require a court approved augmentation plan or substitute water supply plan <br />approved by the SEO to 'continue pumping. The applicant outlines plans to submit water court <br />applications for surface water rights and for an augmentation plan at the New Horizon North site. We <br />encourage that the applicant follow through with these plans to ensure adequate water supply for the <br />facility in the future. <br />The applicant identifies the use of nine existing monitoring welts constructed in October 2008. <br />The SEO has no records of permits for these wells. It these wells were constructed as monitoring holes <br />they must be plugged and abandoned .within one year of completion or else permitted as monitoring wells <br />with the SEO; If these wells were completed without a valid monitoring hole notice or well permit the <br />applicant needs to take Immediate action to plug or permit the wells as monitoring wells. All future wells <br />drilled for monitoring /testing uses should be permitted through the SEO either by notice of Intent to drill <br />monitoring holes or by application to drill a monitoring well. <br />The applicant intends to mine through two existing wells after being appropriately plugged, <br />specifically permit nos. 253229 and 163178. The applicant should submit Well Abandonment Reports to <br />Office of the State Engineer <br />1313 Sherman Street, Suite 818 a Denver, CO 80203 • Phone: 303 - 866.3581 • Fax: 303-866-3589 <br />www.wateratate.co.ue <br />