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Central Appalachia Kning L.L_C. et aL <br />02C4V92 <br />Page 3 <br />bf the following actions, and made the following expenditutes, in fiutherance of beneficial <br />use of the conditional water right adjudicated to the Mack Pumping Pipeline. <br />a. The Mack Pumping Pipeline will be used to supply water for operation of the <br />McClane Canyon andMunger Carryon mines (cite "Mies "), andassociated lands and <br />facilities, which are located n= the Town of Mack, Colorado. The mines and <br />training rights and associated lands, facilities and water rights; including all ofGrand <br />Valley Coal Company's interestin the Mack Pumping Pipeline were conveyed from <br />Grand Valley Coal Company to Lodestar Energy, Inc. by deed dated July 14, 1999. <br />Grand Valley Coal Company W acquired these assets in 1992- <br />b. Permits for operation of the Mines have been issued by the Colorado !vision of <br />Minerals and Geology. Thesc permits must periodically be reviewed an renewed. <br />Reviews were completed and renewals were obtained for these permits during the <br />diligence period and the permits remain in force and e£fcct <br />C. As required by the state of Colorado mining pe=3ts, annual hydra logy s ies for the <br />Mines have be= submitted tothc Colorado Division ofKmcrals and Geo1 By during <br />the diligence peri od. These studies invecaign* aril report on the poten ' effect of <br />taint operation on regional water quality and availability. <br />d. The right to mint lands associated with tiro mines was acquired under f ` cral coal <br />leases from the United States Departmcnt of interior_ Bureau of Land M agement. <br />In compliaAce with these Ieasea, during 1999 auad 2000, an updated Resource <br />P,ecovery aad Protection Plan for the Mines, including a mine plan res a study <br />evaluating ,the recoverable tonnage of coal on the federai coal leases w prepared <br />and submitted to the USDOI_ In addition, reports and other inforutatio required <br />under the federal coal' Icases for the Mines were submitted and requlr d royalty <br />payments were made to the USDOI. � <br />e. NPDES discharge pemtits and storm water discharge permits for o . n of 1 <br />Mitres and assoeiat+:d facilities leave been obtained from the Water Quay! Control <br />Division. Colorado Department of Health. Required rencwiIs of these nits have <br />been obtained. during the diligence period and the pemlits reonaia iu forced effect. <br />f. The NPDES and stormwe ter discharge permits for the Mines require the tt�ee <br />to conduct a water quality monitoring and testing program and periodic re often$ to <br />demonstrate compliance with the permits. 'Me progtam includes rnno tidy aad <br />quarterly constituent sampling and testing and WET testing. Such sam ling and <br />