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October 26. 2015

Eric B. Fjeiaad
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VIA MAIL AND EMAIL

DNR.APPEALS@ALASKA.COV
Mark Myers
Commissioner

Alaska Department of Natural Resources

550 W. 7th Avenue. Suite 1400

Anchorage. Alaska 99501

Re:

Appeal of Reservation for Stream 2003/Middle Creek-Lower Reach

(LAS 27436)

Dear Commissioner Myers:

We represent PacRim Coal. LP ("PRC" or "PacRim") with respect to three applications filed by
the Chuitna Citizens Coalition ("CCC") to reserve water (hereinafter "reservations"* or "IFRs") in
designated portions of Stream 2003/Middle Creek. CCC"s applications were assigned case file
numbers LAS 27340, 27436 & 27437. respectively. On October 6. 2015. the Alaska Department
of Natural Resources ("DNR"). Division of Mining. Land and Water. Water Resources Section,
issued a decision granting a reservation of water to CCC to the Lower Reach of Stream 2003
(LAS 27436) and denying applications LAS 27340 and 27437. PRC provided comments on
CCC's application for a reservation of water (LAS 27436) and is. therefore, authorized to appeal
DNR*s decision to grant the reservation pursuant to 11 AAC 02.010(e).
By way of this letter. PRC appeals DNR's decision to grant a reservation of water to CCC for the
Lower Reach of Stream 2003 (LAS 27436). The decision should be reversed because:

CCC did not demonstrate that a need exists for a reservation. Rather. DNR made certain

improper assumptions and justifications to compensate for CCC"s inability to

demonstrate a need for the reservation, which lead to a flawed analysis by DNR.

DNR used an approach to determine stream How that lacked transparency, that has no
correlation to the level of water necessary to protect fish and fish habitat, and which
could require PacRim to maintain stream levels below the mine area that generally do not
naturally exist in the Lower Reach of Stream 2003.

68016-0001/128361922.2