2010-11-23_APPLICATION CORRESPONDENCE - C2010089

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DEPARTMENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES CAMR) NOV 2 0 2010 UrvvR,tsc, u, t>z;c? irnt?a ?a7 November 23, 2010 Who and Sa Marcia L. Talvitie, Environmental Protection Specialist Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Denver, Colorado 80203 Bill Ritter, Jr. Governor Mike Kingg Executive Dick Wolfe, P.E. Director/State Engineer gin, Re: New Horizon North Mine (Permit No. C-2010-089) New Permit Application Dear Ms. Talvitie: The Division of Water Resources has reviewed the New Horizon North Mine (Permit No. C-2010- 089) application for a new permit. The application proposes to conduct surface coal mining operations on land located approximately 2.5 miles northwest of Nucla in Montrose County. The State Engineers Office (SEO) would like to express several concerns with the project. The applicant proposes to use sediment ponds for drainage of storm/surface/pit water. Currently, the stream system in this location is not overappropriated, however, if the stream system at this location becomes overappropriated, the storage of surface water will be subject to administration. If the construction of any sediment ponds exposes ground water, the pond must be backfilled immediately until a well permit issued pursuant to CRS 37-90-137(2), allowing the exposure of ground water in a pit, is obtained from the State Engineer; This applies to water in any mining pits as well. The applicant proposes to drill a new well on site to provide the facility with water for showers, sanitation, drinking water, vehicle washing, and for fire water back up. A valid permit must be obtained through the SEO prior to the drilling of this well. Though the stream system at this location is not currently overappropriated, the use of the well along with any out of priority surface water diversions will be subject to administration by the Division Office if the stream system in this location becomes overappropriated. If this occurs the well will require a court approved augmentation plan or substitute water supply plan approved by the SEO to continue pumping. The applicant outlines plans to submit water court applications for surface water rights and for an augmentation plan at the New Horizon North site. We encourage that the applicant follow through with these plans to ensure adequate water supply for the facility in the future. The applicant identifies the use of nine existing monitoring wells constructed in October 2008. The SEO has no records of permits for these wells. If these wells were constructed as monitoring holes they must be plugged and abandoned within one year of completion or else permitted as monitoring wells with the SEO; if these wells were completed without a valid monitoring hole notice or well permit the applicant needs to take immediate action to plug or permit the wells as monitoring wells. All future wells drilled for monitoring/testing uses should be permitted through the SEO either by notice of intent to drill monitoring holes or by application to drill a monitoring well. The applicant intends to mine through two existing wells after being appropriately plugged, specifically permit nos. 253229 and 163178. The applicant should submit Well Abandonment Reports to Office of the State Engineer 1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 www.waterstate.co.us