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• COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver. Colorado 80203 <br />STAFF SUMMARY FORM FOR <br />CONSENT AGENDA <br />Date: May 24, 2016 <br />Operator: Cripple Creek & Victor Gold Mining Company <br />Permit No.: M-1980-244 <br />Permit Type: 112d-3 Designated Mining Operation <br />Specialist: Elliott Russell <br />Action: Possible Violation of C.R.S. §34-32-121.5 and Rule 8.1(b) and <br />Possible Violation pursuant to C.R.S. §34-32-124(1) <br />Resolution: <br />Cripple Creek & Victor Gold Mining Company (Operator) voluntarily consents to a violation of C.R.S. <br />§34-32-121.5 and Rule 8.1(b), for failing to notify the Office of loss of containment; and a violation <br />pursuant to C.R.S. §34-32-124(1), for failing to comply with a condition of the permit from Amendment <br />10, Volume 1, Exhibit U, Sections 6.3.2 and 6.4, specifically addressing the secondary containment <br />structure. The Operator also consents to a Cease and Desist Order, Corrective Actions, and Civil <br />Penalties provided herein, for the Cresson Project, Permit No. M-1980-244. <br />Chronology: <br />• April 28, 2016 - DRMS site inspection, report signed and mailed May 6, 2016 <br />• May 6, 2016 - RTB signed and mailed to Operator <br />Reason for Violation: <br />As detailed in the Division's inspection report, signed May 6, 2016, the Division observed evidence that <br />Vat Leach Tank #1 of the High Grade Mill had overtopped with process slurry, resulting in failure of the <br />Environmental Protection Facility to contain or control designated chemicals or process solutions. The <br />Division observed that the Operator had failed to maintain the approved capacity of the secondary <br />containment structure for the cyanidation vat leach tank. The Division observed evidence of possible <br />loss of containment of the secondary structure, resulting in possible failure of the redundant <br />Environmental Protection Facility to contain or control designed chemicals or process solutions. The <br />Operator failed to notify the Division of the failure of these Environmental Protection Facilities. <br />of Com <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us Few X90 <br />John W. Hickenlooper, Governor I Robert Randalt, Interim -Executive Director I Virginia Brannon, Director I <br />X2876*. <br />