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measured in well SC -1 but there has been no apparent trend or indication of impact. The 2012 <br />sampling indicated a substantial drop in dissolved solids, chlorides, etc. We suspect we have a <br />bad sample, or some unknown condition which resulted in this result. We will pay particular <br />attention to the sampling of this well in 2013. <br />Generally, the limited water quantity and poor water quality suggests there is limited <br />transmissivity between the North Fork of the Gunnison River alluvium through the Rollins <br />sandstone down - gradient towards the area associated with the Sanborn Creek Mine. <br />SC -3 Well - B -Seam Coal — Sanborn Creek Mine <br />Monitor well SC -3 is located east of the Sanborn Creek reclaimed mine portal area along the <br />entrance to the pre- existing ranch road to Coal Gulch. <br />Monitoring well SC -3 was completed into the B Seam coal. Monitoring data were collected <br />from well SC -3 prior to any substantial mining in the B -Seam of the Sanborn Creek Mine. The <br />SC -3 well is up- gradient relative to the B seam underground mining activities but down - gradient <br />from the North Fork of the Gunnison River <br />The plastic pipe casing is squeezed at the 20 foot level making it difficult to lower a bailer. <br />Using a smaller diameter bailer we have found very minimal water available in the well. In fact <br />there are times when the initial bailing of the well to remove one volume effectively drains the <br />available water. The lack of water in the well and the poor water quality suggests there is little <br />transmissivity and connection between the North Fork of the Gunnison River and the B seam <br />coal at this particular vicinity of the mine. The 2012 data indicated elevated levels of zinc and <br />iron. Perhaps the lack of water in the well is skewing the results. We will monitor further in <br />2013. <br />As the of SC -1 and SC -3 wells serve to monitor only the Rollins sandstone and B -seam coal <br />respectively up- gradient of the Sanborn creek mining area, their utility towards the monitoring <br />of the Sanborn creek mine itself remains somewhat limited. <br />6.0 Mine Water Information <br />Elk Creek Mine Water <br />The water utilized in the mine continues to be all imported from the alluvial water supply well <br />located near the North Fork of the Gunnison River per the OMLLC water rights and <br />Augmentation Plan. Water that is collected and routed to the underground Elk Creek mine sump <br />generally comes from a number of sources, including overspray on mining equipment and <br />beltlines for dust control, motor cooling and general leaks and spillage, inflow from sealed mine <br />areas, etc. <br />During July, 2005 a thermal event occurred in the 1 West Panel gob. Control of the event was <br />facilitated, in part, by pumping of water into the area for cooling purposes. Subsequently, in late <br />2005, it was observed that the sealed 4 West and 5 West gate road areas were generating <br />approximately 14 gpm and 12 gpm of water respectively from behind the mine seals. The water <br />was eventually routed to the mine sump. We believed that the source of water draining from <br />16 <br />