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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 26, 2004 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Sediment Pond Inspections <br />2nd 3rd and 4"' Quarters 2003 <br />Lorencito Canyon Mine, #C-96-084 <br />Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />MIN &RALS <br />GEOLOGY <br />AEC LAM ATION•MINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology has completed review of the 2"d 3'd and 4`h <br />quarter 2003 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 15S quarter 2003 satisfied <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. However, the Division has not yet received a <br />response to our review of May 7, 2003 concerning the 15` quarter sediment pond <br />inspection. Please incorporate that response with any response required by this review. <br />Second quarter reports did not include a report for pond 5, apparently due to the <br />pending completion of construction of this pond. Third quarter reports indicate sediment <br />markers had been established in all ponds except 5A, 6A, and 9. Fourth quarter reports <br />indicate the sediment marker at pond 9 was established and markers at ponds 5A and <br />6A remain to be set. All reports indicate acceptable structural integrity and no instability <br />was noted. Completion of establishing sediment markers and survey of relative <br />sediment levels and water levels is scheduled for the 151 quarter of 2004 according to 4th <br />quarter inspection reports. All data reported is consistent with observations made <br />during field inspections during 2003. The reports meet the requirements of Rule <br />4.05.9(17). <br />We have no further questions or concerns at this time. If you have any questions, <br />please call me. <br />Sin rely, <br />Ke t Gorham <br />Environmental Protection Specialist II <br />Office of Office of Colorado <br />Mined Land Reclamation Active and InaRive Mines Geological Survey <br />