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iii iiiiiiiiuiii iii ~Q.i ~c,~c~ L Gv~ STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmenl of Natural Resources 1713 Sherman 51., Room 215 Denver, Colorado 80203 Phone. (30]1 866-3567 FAX: 1303) 832-8106 October 20, 1994 I~~~~ DEPARTMENT OF NATURAL RESOURCE Ralph Lopez Roy Ramer Governor Basin Resources, Inc. lames s.L«nhead 14300 Highway 12 E.etuuve Direcor p We$ton, CO 01091 Michael B. Long Division Director Re: Basin Resources, Inc., The New Elk Mine, Permit No. C-81-012 Request for Vacation of NOV C-94-020 Dear Mr. Lopez: On August 12, 1994, the Division issued NOV C-94-020 to Basin Resources for Basin's failure to maintain the principal spillways of two ponds constructed at the New Elk Mine. It is my understanding that both of these spillways were leaking at the time of the inspection, and that Basin was unable to repair the leaks prior to [he conclusion of the Division's inspection that began on August 10, 1994 and ended on August 12. The Division received Basin's request for vacation on September 12, 1994. It is my understanding that Basin Resources has had previous experience with leaking principal pond spillways. During 1993, at the Golden Eagle Mine, Basin was cited for discharging "black" water from one of its sediment ponds. When Basin attempted to close the gate on the dewatering device, drainage continued to leak past the gate. I understand that subsequent investigations by Basin indicated that the spillway culvert had a crack in it, and that Basin had to excavate the culvert to repair the crack. I've been made aware that during the week immediately preceding the August 1994 oversight inspection, the New Elk Mine received a rainfall event large enough that Pond 008, the MSHA impoundment situated below the refuse pile and immediately adjacent to State Highway 12, was filled to within a foot of the primary spillway inlet. I'm also aware [hat at the time of the August 10-12 inspection, Basin personnel and OSM and DMG inspectors observed that a leaking horiwntal seam in the vertical riser of the primary spillway was allowing water to flow from the pond into the spillway and then to discharge. The level of the leak in the riser was approximately seven to eight feet below the level of the water in the pond. I understand that Basin was unable to repair the spillway leak by the end of the State's inspection. I understand further that at Pond 007, Basin opened a closed gate on that pond's dewatering device during the oversight inspection. I understand that when Basin attempted to close the gate,