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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />7313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone; (303) 86113567 <br />FAX: (3031831106 <br />January 18, 2006 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Quarterly Report Review, 2nd and 3rd Quarters 2005 <br />Lorencito Canyon Mine, #C-96-084 <br />Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />0.EC LANATION•NINING <br />rAf ETY•ECIENCE <br />gm oweoE <br />Governor <br />Russell George <br />Executive Direttar <br />Renaid w. cottony <br />Division Director <br />Natural Resource Trusoee <br />The Division of Minerals and Geology has completed review of the 2"d and 3rd quarter reports <br />submitted for sediment ponds, excess spoil fills, and discharge monitoring reports (DMR's) for <br />the Lorencito Canyon Mine. Please find the results of this review under the respective headings <br />below. <br />Sediment Ponds <br />The 2"d quarter reports meet the requirements of Rule 4.05.9(17). Sediment and water levels <br />are noted in the 3r° quarter reports and these reports also meet the requirements of Rule <br />4.05.9(15) for the calendar year. Seeding of the areas disturbed during cleanout of pond 9 was <br />noted in the second quarter, although as of the 3"' quarter inspection, the sediment marker had <br />not been reset in this pond. <br />Excess SDOiI Fills <br />The reports reviewed forthe three excess spoil fills meet the requirements of Rules 4.09.1(11). <br />The 2"d and 3`d quarter reports inaccurately identify surface runoff from Fill 9 as being directly to <br />pond 7, rather than pond 9. Please correct this statement in future reporting. <br />Discharge Monitorino Reoorts <br />No discharges occurred during the 2"d and 3`d quarters, which is consistent with observations <br />during DMG field inspections. <br />We have no further questions or concerns at this time. If you have any questions, please call <br />me. <br />Sincely l~ <br />Ke~rtt Gorham <br />Environmental Protection Specialist II <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inagive Mines Geological Survey <br />