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STATE OF COLORADO <br />DIVISION Of MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman S[., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832.8106 <br />April 4, 2005 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Sediment Pond Inspections <br />1st, 2"d, 3`d, and 4th Quarters 2004 <br />Lorencito Canyon Mine, #C-96-084 <br />Mr. Thompson: <br />COLORADO <br />DIVISION OE <br />MINERALS <br />GEOLOGY <br />0.ECLAN ATION•NINING <br />EAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Canany <br />Division DlreROr <br />Natural Resource Trustee <br />The Division of Minerals and Geology has completed review of the 1st 2nd 3rd and 4in <br />quarter 2004 sediment pond inspections at the Lorencito Canyon Mine. Reports were <br />noted for ponds 5, 6A, 7A, 8, 9, 9A, and 10A. Reports in the 2nd quarter 2004 satisfy <br />the requirements of Rule 4.05.9(15) regarding the depth and elevation of any <br />impounded water and the existing storage capacity (both sediment and water) of the <br />impoundments at the time of the inspection, as certified by Charles McGlothlin Jr., a <br />registered professional engineer. <br />All data reported is consistent with observations made during field inspections during <br />2004. The reports meet the requirements of Rule 4.05.9(17). <br />Review of the written record indicates no response from Lorencito Coal Company for <br />the following DMG review letters; <br />DMG Sediment Pond Review, May 7, 2003 <br />DMG Sediment Pond As-Built Review, January 7, 2003 <br />Below are the pertinent portions of those review letters: <br /># fF * *! * # * fFf k*!4*YRY[* **a!f **f fF* * * * * * * fF!!******** fF * * * * * *#* 1'k* *:!** i * * fF * k**f * ***Ytf ***f ****#!* <br />May 7, 2003 <br />Pond As-built bottom Re ooed sed level Comment <br />6A 6972 6967.9 Sed level below actual and bottom <br />7A 6898 6908 Ten feet of sediment in the ond? <br />8 6743 No observation? Missin information <br />9 6895 6892.8 Sed level below actual and bottom <br />9A 6904 6899.8 Sed level below actual and bottom <br />Office of Office of Colorado <br />Mined Land Reclamation Active and InaRive Mines Geological Survey <br />