2013-04-10_PERMIT FILE - C2010089

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INTRODUCTION Since early 1993, Western Fuels- Colorado, LLC (WFC) has mined coal in the area west of Nucla, Colorado known as the New Horizon Mine. The New Horizon Mine is an open pit mine in which WFC removes approximately 60 to 120 feet of overburden material, mines the coal from the seam, replaces the overburden material and restores and reclaims the surface profile. The mined area is reclaimed according to the standards of the Colorado Division of Reclamation Mining and Safety ( "DRMS "). WFC is a subsidiary of Tri -State Generation and Transmission Association, Inc. All of the supplies from the New Horizon Mine are used as fuel for electricity generation at Tri- State's Nucla Station Power Plant located south of the Town of Nucla, Colorado. The mine was purchased in 1992 from Peabody Coal Company, which had been mining coal in the area since 1963. Since 1993, WFC has been mining in the New Horizon 2 (NH2) Permit area. Sometime in 2013, WFC plans to complete mining in the NH2 area, and then move its operations to the New Horizon North (NHN) area. It may take approximately seven to ten years to complete mining in the NHN area. WFC then plans to move its operations to the Cyprus area for an undetermined period of time. These areas are shown in Exhibit A to the Proposed Decree for Water Court Case IOCW208. The primary supply of surface irrigation water for all lands in the Nucla area is a series of ditches and laterals from the Highline Canal, also known as the Colorado Co- operative (CC) Ditch. The Ditch has decrees to divert 145 cfs from the San Miguel River. The CC Ditch has 3,250 outstanding shares of which WFC owns 115 shares. In addition to its share ownership, WFC also leases additional shares from landowners in the active and previously mined areas to assist with reclamation efforts, until final reclamation is accomplished and certified. Irrigation for revegetation and reclamation is largely accomplished by side -roll sprinkler systems. As needed, WFC uses its own CC Ditch shares, as well as leased shares, to irrigate the lands within the mining area. In the process of reclaiming the mined areas, vegetation must be restored as required under WFC's DRMS mine plan. Depending on the terms of the agreement with the landowner, the land is restored as either irrigated farm ground, or dry -land pasture that will not be irrigated again. In some instances, the DRMS mine plan provides that all or part of the specific parcel must be established as irrigated land, in which case the land profile is restored and water is applied in accordance with standard agricultural practices. Revegetation must be complete for at least ten years before final DRMS review. As of this date, the lands in NH2 have not been released from bond, and continue to be subject to a reclamation plan required by DRMS. As part of the reclamation process, certain lands have been or will be dried -up, either temporarily or permanently. These dried -up lands are to be used for consumptive use credits in this augmentation plan to offset current and future mining uses. There is also a large area of pre - 1992 reclamation land that has been permanently dried -up. These dry -up areas have been identified and are discussed below.