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falling high mountain stream. It drops approximately 600 feet from the southern end of the New <br />Discovery claim to the northern end of the White Marble claim. Based on the drainage area, Yule <br />Creek, where it joins the Crystal River at Marble, is estimated to have a mean flow of 42 and 76 cubic <br />feet per second during May and June respectively. <br />The underground portions of the quarry receive water from faults in the marble, primarily in early <br />summer. This water is generally retained within the settling sumps in the quarry. But during high <br />runoff periods, some water discharge will be pumped from the sumps. The quality of the water in the <br />sumps has been monitored periodically by the Colorado Department of Health. Records indicate no <br />water quality problems and none are expected in the future. CYMC operated the quarry under Permit <br />No. CO- G- 500184 issued by the Colorado Department of Health. Sierra Minerals Corporation operated <br />the quarry under a new Process Water and Stormwater permit from that agency. Polycor — Colorado <br />Stone Quarries, Inc. now operates the quarry under Permit No: M- 1999 -058. The maximum flow from <br />the quarry is estimated at 100 gpm (0.16 cfs) during the high flow season, so there should be no <br />noticeable impact on Yule Creek from such discharge. <br />The primary non - potable water use at the quarry is for cooling, dust control and flushing of the saw <br />cuttings from the diamond wire saw and chain saw. Six diamond wire saws and two chain saws are used <br />for the production. Each saw consumes an average 5 gallons of water a minute. Three development <br />gallery saws are operated dry and consume no water. This rate is not consumptive since the water is <br />reused from settling ponds and sumps in the quarry. Water from seepage into the quarry from <br />surrounding formations is the source of this circulating, non - potable water requirement. Past experience <br />indicates that the quarry generates excess water in the sumps during spring runoff periods. At these <br />times, some water needs to be discharged. Potable water is brought to the site as required. Sanitary waste <br />facilities are portables toilets and do not require water. <br />There has been no significant effect on the quantity and quality of ground water or surface water from <br />CYMC or Sierra past operations and Colorado Stone has not noticed any from its operations. The <br />fracture zone from which the water is seeping is limited to a 50 to 80 feet zone close to surface (apex) <br />and even if Colorado Stone is forecasting four times more production than the previous operator, no <br />Yule Quarry April 2012 8 <br />