Peat is being considered for fuel in Minnesota. This study will investigate the potential effects of large-scale surface mining of peat on the hydrology and water quality of Upper Red Lake and the Tamarac River. The major aspects of the study are the characterization of the surface-water and groundwater hydrology and water quality, including the trace-metal content of the peat. Data will be collected to construct two- and three-dimensional digital models to simulate the movement of ground water and its relation to surface water in the peatlands, streams, and lakes. After the model is calibrated with field data, it will be used to evaluate the effect of mining peat on the hydrology and water quality of the Upper Red Lake and Tamarac River.