2013-04-16_REPORT - C1996083 (3)

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Bowie Resources, LLC April 16, 2013 Bowie No. 2 Mine 2012 Annual Hydrology Report parameters required on springs with flows greater than five (5) gallons per minute. During the construction phase of the mine, four (4) springs (S -6, S -7, S -9 and S -15) were eliminated by road and portal bench construction activities. The 2012 field and laboratory analysis is consistent with baseline data provided in the permit application. There has been a trend in many of the springs that shows the conductivity increases as the flow decreases. This trend is most likely caused by the increased time the water is in contact with the alluvium because of the lower flows. Surface Water Monitoring Stations: STREAMS AND DITCHES Thirty seven surface water monitoring stations including the North Fork of the Gunnison, Terror Creek, Hubbard Creek, Freeman Gulch, the Deer Trail Ditch, Stephens Draw, the Fire Mountain Canal and Gulches A through D are monitored quarterly for field parameters and semi - annually for full suite analysis. The results of the 2012 field and laboratory studies are consistent with baseline information supplied in the permit application. The USGS, with right of way permission from the USDA - Forest Service, installed continuous monitoring stations on both Hubbard and Terror Creeks. Similar stations are installed near each creek's confluence with the North Fork of the Gunnison River. These stations have been calibrated by the USGS's hydrology department and now provide accurate readings for the Annual Hydrology Reports. Surface Water Monitoring Stations: SMALL AREA EXEMPTIONS The locations of the small area exemptions are presented on Map 20. The Applicant will monitor the flow from the small area exemptions to assure compliance with 4.05.2(3). The Applicant will use its best efforts to obtain samples. The samples will be analyzed for pH, conductivity and total settleable solids. Samples will be in compliance if they contain settleable solid levels of 0.5 ml /I or less and the pH is greater than 6.5 and less than 9.0. No small area exemption sampling was performed during the year. Coal Member of Mesaverde Sixteen bedrock wells were monitored during the 2012 sampling season. These holes were monitored quarterly for field parameters and semi - annually for full suite laboratory analysis. Data collected and evaluated is consistent with the baseline information provided in the permit application. The mine construction work during 1997 required the elimination of four monitored drill holes. These holes are DH 42, DH 52, DH 54 and DH 55 and were located near the mine portals. Drill Holes DH -13 and DH -34b were eliminated by mining. Drill hole DH -34c was damaged by ground movement. DH -16 is blocked at 60 -feet so no monitoring can be performed. Drill Holes DH -57, 57a and DH -58, 58a were added in conjunction with the Terror Creek Coal Exploration Plan, with monitoring beginning in the fall of 1999. Drill holes DH -57 and DH57a were destroyed 61