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1. Introduction and Qualifications of the Author <br />The purpose of this report is to provide the evaluation of the sediment laden water discharge that <br />occurred on October 24 and 25 of 2014 at the Revenue Mine in Ouray County. The report includes the <br />background conditions at the mine, the events that led to the discharge, the corrective actions taken <br />and the evaluation of the impacts of the discharge. Greg Lewicki, P.E. Mining and Environmental <br />Engineer and Principal of Greg Lewicki and Associates, PLLC, is the principal author of this report and <br />has worked on the environmental permits and ongoing compliance for mine in Colorado for 34 years. <br />Mr. Lewicki is the principal person who developed the DRMS permit and many other permits for the <br />Revenue Mine. He has worked with water impacts of mining for 37 years since graduating from Penn <br />State University with a degree in Mining Engineering in 1977. <br />2. Existing Information for the Site <br />The Revenue Mine is situated along County Road 26 downhill from Yankee Boy Basin, along Sneffels <br />Creek southwest of Ouray, CO. This area of the San Juan Mountains is known for its precious metal <br />deposits, and the area is littered with the remains of mining from the 19th and 20th centuries. Mining in <br />this area started with the staking of the Virginius claim in the Virginius Vein in October of 1876. This <br />area is located at an approximate elevation of 12,900 feet and approximately 7600 feet southwest of the <br />Revenue portal in Governor Basin. See Map 1 for the location of the Virginius and the Revenue Mine <br />workings. The Virginius Shaft was begun around 1878 at the vein intersection and was extended <br />downward to the 1, 2 and 3 levels. Each level was 100 feet below the previous level. A mill was <br />constructed at this location and work continued downward to the 10 level in 1890. Hoisting and pumping <br />costs continued to rise, so a decision was made to develop a lower access to the vein. This was the <br />start of the Revenue Tunnel. The Tunnel was started at an elevation of 10,670 feet and was driven 7600 <br />feet to intersect the Virginius Vein underground at an elevation of 10,750 feet. The Tunnel was <br />purposely driven slightly uphill so water would freely drain from it. The connection was made in 1893. <br />The inert waste rock from the driving of the tunnel was placed out of the Revenue portal area and is still <br />there today. <br />The Virginius shaft was extended down to the 14 level and a raise was driven from the Revenue Tunnel <br />upward approximately 600 feet to intersect with the Virginius workings. Once this was done, the <br />Page 3 of 17 <br />