2013-04-03_PERMIT FILE - X201322801 (2)

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The strata in the Sunset Trail areas dip generally at 4 -5 degrees to the north and northeast. Steeper dips are assumed to occur in the proximity of the Mt. Gunnison laccolith although the extent of folding is unknown at this time. Surface Water Resources The town of Paonia, situated about 11 miles west of the exploration area, averages around 15 inches of precipitation annually. Given that precipitation increases as elevation increases, the annual precipitation of the Sunset Trail area would be expected to be somewhat higher. An estimated 75% of the annual precipitation occurs during late winter and early spring, mostly as snowfall. June, July, and August are often the driest months. "The East Fork of Minnesota Creek, just west of the lease modification areas, and Deep Creek, just northeast of the modification areas, drain to the North Fork of the Gunnison River. The North Fork of the Gunnison River joins the Gunnison River downstream of Hotchkiss. There are two USGS monitoring locations along this reach: North Fork of the Gunnison River near Somerset Colorado (Station No. 09132500) and North Fork of the Gunnison River below Leroux Creek, near Hotchkiss Colorado (Station No. 09135950). Stream flow has been monitored at the station near Somerset since October 1933. The drainage area at the Somerset area is 526 miles. Project Are Surface Water Hydrology Figure 3.7 shows the watershed areas that encompass the coal lease modifications. Most of the lease modifications area (1,694 acres) is drained by the 34,757 acre Miller Creek subwatershed (HUC6) that includes Lick Creek, South Prong Creek, and Horse Creek, all of which drain into the East Fork of Minnesota Creek west of the lease modifications. A small portion of the lease modifications (-60 acres) drain to the northeast into Deep Creek. Both drainages eventually empty into the North Fork of the Gunnison River. Lick Creek is an intermittent drainage. Flows within this channel are influenced mostly by spring runoff conditions with a measure peak flow around 3 cfs (HYDROGEO, 2009), with zero flow conditions typically occurring August - March. South Prong Creek and Horse Creek, as reported by MCC data, are ephemera] and flow only in response to spring runoff conditions and storm events." Final Environmental Impact Statement, Federal Coal Lease Modifications COC -1362 and COC- 67232, pages 104 -105, August 2012. Groundwater Resources "Shallow groundwater resources in the lease modification area are limited due to geomorphic controls imparted from the relatively steep gradients and stream profiles of drainages in the area, resulting in relatively thin alluvial /colluvial deposits confined to the bottoms of drainages. Groundwater that surfaces as springs and seeps in the tracts is associated with these shallow alluvial /colluvial deposits and does not appear to be hydrologically connected with deeper bedrock aquifers. There are no alluvial /colluvial monitoring wells in the area that are currently monitored as part of the West Elk hydrologic program. Bedrock groundwater resources in the area are limited to isolated perched lenses and fracture fault zones. Age - dating chemical analysis from the West Elk monitoring program have shown that bedrock groundwater resources in the vicinity of the mine are part of a deep inactive system that is not in direct contact with near surface water (USDA Forest Service 2003). 3