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RECE~iJE® NOV 2 0 2002 Division of Minerals and Geology November 19, 2002 Chris Gates Colorado Department of Health 4300 Cherry Creek Drive South Denver, Colorado 80222-1530 Re: Golden Eagle Mine -Permit No. COG-850040 Dear Mr. Gates: Peak Project Management 3800 County Road 63.9 Trinidad, CO 81082 Phone/Fax: (779) 846-4975 Basin Resources is the owner-operator of the Golden Eagle Mine in Las Animas County Colorado. The Golden Eagle Mine is covered under the Colorado General permit COG-850040. Coverage under this permit was recently renewed. This renewal included coverage under the provisions for Stormwa[er monitoring. The application noted that the discharge points had been reclaimed and were noted for historical reference only. However, the permit renewal continued the reporting requirements. The mine closed in December of 1995 and is now in the sixth year of the final reclamation process. The State of Colorado, Division of Minerals and Geology (DMG) is charged with monitoring reclamation success. In August of 1997 Basin requested Phase I bond release. Al] mine related facilities (except settling ponds) not approved as part of [he post-mining land use had been removed and [he site regraded to the approved post mining topography. DD?G approved Phase I bxd release March 13, 1998. ~In September of 1998, Basin submitted a study to DMG demonstrating that vegetative growth at the mine site was adequate to meet the settleable solids standard from the 10-year 24-hour storm event. Based on this study, Basin requested approval to decommission and reclaim the two sedimentation ponds approved as discharge points in NPDES permit number COG-850040. DMG approved this request October 14, 1998. Pond reclamation was completed in December of 1998. On April ]3, 1999, Mike Knope, an engineer with the Colorado Department of Health, inspected the Golden Eagle Mine to verify reclamation of the mine-site and pond removal. At the request of CDH, Basin continued to submit DMR's for the above referenced permit even though the ponds had been removed from service and the area reclaimed. Iri August of 2000, Basin submitted a request for Phase II bond release to DMG. Amine-site is eligible for Phase II bond release when Phase 1 bond release has been granted, appropriate vegetation cover has been established, and erosion has been demonstratively controlled. On January 29, 2001 DMG issued a proposed decision approving Phase II release. This decision became final on March 12, 2001.