2016-05-23_INSPECTION - M1990041

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PERMIT#:M-1990-041 INSPECTOR'S INITIALS: MAC INSPECTION DATE: April 26,2016 complete inventory of all fuel, lubricants and chemicals which will be stored at the mine site. The inventory shall specify total volumes of materials to be stored, shall identify the various storage areas, and shall provide a plan of how the Operator will address clean-up of any spills of the stored materials. In addition, if fuel is to be stored, then the Technical Revision shall address the how the appropriate secondary containment will be constructed. Secondary containment areas must be able to contain 110% of the total volume of fuel to be stored. CORRECTIVE ACTION DUE DATE: 6/10/16 OBSERVATIONS The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). The Operator did not have a representative present for the inspection. Matt Collins attended the inspection on behalf of George Otten, but did not represent Central City Consolidated Mining in a formal capacity. In addition, Kathy Rosow and Michelle DeLaria with the Colorado Department of Public Health and Environment, Water Quality Control Division attended the inspection. The Bates-Hunter Mine is located between the towns of Central City and Blackhawk alongside State Highway 279. The mine site occupies approximately 1 acre and is situated at an elevation of 8,300 ft. The Golden Gilpin Mill is located about a half a mile up Highway 119 from its intersection with State Highway 279. The mill facility occupies the remaining 2.5 acres of the 3.5 acre permit boundary. The post-mining land use is industrial/commercial. Availability Of Records: The Bates-Hunter Mine completed the first five year term of Temporary Cessation on March 8, 2016. The Operator did not submit a Notice for the second five year term of Temporary Cessation as outlined in Rule 1.13.5(3). Therefore, the permit was taken out of a Temporary Cessation status and placed back into Active status. The Division notified the Operator in writing of this change to the permit status on March 31, 2016. Pursuant to Rule 1.13.1(1), a permit granted pursuant to these Rules shall continue in effect as long as an Operator continues to engage in the extraction of minerals and/or the mining operation complies with the provisions of the Act. Therefore, the Operator shall resume active mining operations at the Bates-Hunter Mine. If active mining operations will not resume, then the Operator shall commence with reclamation of the site. Pursuant to Rule 3.1.3(2), all reclamation shall be carried to completion by the Operator with all reasonable diligence, and each phase of reclamation shall be completed from within five years from the date the Operator informs the Board or Office that such phase has commenced. Acid And Toxic Materials: The Division observed three 55 gallon drums on the east side of the Hoist/Office Building; two unlabeled steel drums and one plastic drum with a Ferric Chloride label. The contents of one of the steel drums had overtopped the container and spread from the concrete pad to the ground. The lid of the second drum was bulged outward, indicating the drum was potentially pressurized. The Division did not move any of the drums or remove lids; all observations were visual. The Division observed a fuel containment area on the east side of the Water Treatment Building. The secondary containment for the fuel consists of an earthen impoundment with a liner. The liner was not anchored and did not appear to provide complete coverage over the impoundment. Two fuel racks were located within the fuel containment area. The fuel racks contained six 55 gallon steel drums and one larger steel drum. The drums were not labeled. In addition, the Division observed numerous plastic gas cans around the perimeter of the earthen impoundment.The secondary containment was at full capacity at the time of the inspection and had overtopped the impoundment in several areas as evidenced by the staining of soil around Page 2 of 5