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V. COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Brian Watterson <br />Hayden Gulch Terminal, Inc. <br />P.O. Box 670 <br />Hayden, CO 81639 <br />September 23, 2016 <br />Re: Seneca II West, C1982-057, Second Quarter 2016 Sediment Pond Review <br />Dear Mr. Watterson: <br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) received Seneca Property, LLC's <br />second quarter 2016 sediment pond inspection reports on July 27, 2016. The Division finds the above <br />reference report to be in compliance with the following CDRMS regulation. <br />4.05.9(17) – Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) – A copy of the report shall be submitted to the Division on a quarterly basis. <br />The following sediment ponds were inspected on the respective dates: Pond 005- 5/4/2016, Pond 006- <br />5/4/2016, Pond 009- 5/3/2016, Pond 015- 5/3/2016, Pond 016- 5/4/2016, Pond 017- 5/4/2016. <br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) found the above reference report to <br />be in compliance with the following CDRMS Regulations, for Sediment Ponds 005, 006, 009, 015, 016, <br />an017. SCC provided quarterly impoundment inspections for stock tankT-1, T-2, T-3, T-5, T-18, T-20, T- <br />22, T-24, and T-26.as well. <br />4.05.9(14a) — Inspections shall be made at least yearly until removal of the structure or release of the <br />performance bond. <br />4.05.9(14b) — Provide to the Division a certified report that the impoundment has been constructed and/or <br />maintained as designed, and in accordance with the approved plan and applicable <br />regulations. <br />Maintenance items identified included observation of a recent slump on the slope south of Pond 006, tilting <br />of Pond 015 flume, seepage under Pond 016 flume, and seepage under Pond 017 flume. All impoundments <br />were functioning as designed at the time of the inspection. The report noted that additional bentonite was <br />needed to fix undercutting of the flume at Pond 016 and Pond 017. This item does not affect the function of <br />the pond structures. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director <br />o� colo <br />0 <br />'�1876 <br />