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Mr. Sutherland <br />September 10, 2012 <br />Page 2 <br />2. Potential conditions at the operation will include exposure of mineralized materials at the <br />surface, including ore and waste rock which may contain naturally occurring acid- or toxic - <br />forming materials. Waste rock and sub - economic mineralized materials, which may be acid- or <br />toxic forming, will be disposed of in waste rock areas exposed to precipitation and near surface <br />waters potentially threatening the prevailing hydrological balance. <br />3. Potential disturbances of historic mine tailings and rock waste dumps may include exposure of <br />materials that contain toxic- or acid - forming constituents which if exposed to the surface could <br />further threaten the prevailing hydrological balance. <br />Based in part on the current or potential conditions described above the Division has determined the <br />permit meets the criteria of a DMO. Therefore the permit must be amended to comply with the <br />requirements of a Designated Mining Operation. <br />If you agree with this determination, you are required to notify the Division by mail of your concurrence <br />within thirty (30) days of the date of this Notice, and proceed to comply with the requirements of Rule <br />7.2.3(1). If you concur, then pursuant Rule 7.2.3 (2) as the operator you must: <br />A. Within sixty (60) days of the date the Division receives your Concurrence file a demonstration <br />that the existing permit contains the necessary elements of an Environmental Protection Plan <br />( "EPP ") in accordance with C.R.S. §§ 34 -32 -116 and 34 -32 -116.5 and Rules 3, 6 and 7; <br />B. If the existing permit application does not contain an EPP, submit an EPP within one hundred <br />and eighty (180) days of the date the Division receives your Concurrence; or <br />C. Within thirty (30) days of the date the Division receives your Concurrence request a period <br />longer than one hundred and eighty (180) days not to exceed one (1) year to submit an EPP and <br />explain the reasons for such a request. <br />If you disagree with the Division's determination, you may appeal, in writing, to the Division within thirty <br />(30) days of the date of this Notice, per Rule 7.2.4. Upon receiving such notice, the Division shall <br />schedule a meeting with you to discuss the pending designation and steps necessary to appeal the <br />designation to the Mined Land Reclamation Board. <br />If you have any questions regarding this Notice, please contact Wally Erickson, at the Division's Durango <br />Field Office, 691 CR 233, Suite A -2, Durango, Colorado 81301; telephone 970 - 247 -5469, or myself in the <br />Grand Junction Field Office, 101 S. 3rd St, Suite 301, Grand Junction, Colorado, 81501;telephone 970- <br />241 -1117. <br />Sincerely, <br />A 41 -C <br />Russ Means <br />Senior Environmental Protection Specialist <br />Grand Junction Field Office <br />Ec: Tony Waldron, DRMS Minerals Supervisor, Denver <br />Wally Erickson, DRMS Durango Field Office <br />