2003-08-25_REVISION - M1977378

• Permit No: M1977378
• IBM Index Class Name: Revision
• Doc Date: 8/25/2003
• Doc Name: Rationale for Approval Over Objections
• From: DMG
• To: Parties and Interested Persons
• Type & Sequence: AM5
• Media Type: D
• Archive: No

~Eh1VER
OFFICE
STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
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AUG 2 9 2003
DIVISION OF
MINERALS
Division of IlNol2rai: aaa~ ~,,,,,,;,I,j
August 25, 2003 ~/~
Parties and Interested Persons to Amendment 5 of the Sunnyside Mine
GEOLOGY
RECLAMATION
MINING•SAFETY
Bill Owens
Governor
Greg E. Walther
Executive Director
RE: Rationale for Approval Over Objections Amendment 5 (AM-05) Ronald W. Cottony
r , Acting Division Director
Sunnyside Gold Corporation, Sunnyside Mine, Permit No. M-1977-378.
Introduction
On August 11, 2003, DMG recommended approval of AM-05 to the-Sunnyside Mine permit,
over objections. Following is DMG's rationale for the approval.
The application for AM-05 was filed May 12, 2003. Through AM-05, the permit holder,
Sunnyside Gold Corporation (SGC), proposes to modify the post-mining land use of
approximately ten acres of the permit from rangeland to industrial use. AM-05 also proposes
to allow office and shop buildings and structures associated with the wastewater treatment
facility to remain as permanent structures to support industrial activities beyond the life of the
permit.
Ownership of the 10-acre (+/-) area affected by the proposed amendment is divided between
Gold King Mines Corporation (7 acres, more or less) and San Juan Corporation (3 acres,
more or less). Gold King Mines Corporation (Gold King) requested that the buildings and
wastewater treatment facility on their property be allowed to remain as permanent structures
to support post-mining industrial activities. San Juan Corporation objected to the wastewater
treatment ponds remaining as permanent structures. The four ponds, associated with the
wastewater treatment facility, are located on lands owned by San Juan Corporation.
The wastewater treatment facility is permitted by the Water Quality Control Division (WQCD)
of the Colorado Department of Public Health and Environment, Colorado Discharge Permit
System (CDPS) Permit No. CO-0027529. WQCD is the enforcement authority for the
wastewater treatment facility and conducts routine inspections to verify compliance with its
regulations and permit conditions. WQCD recently approved transfer of the CDPS permit
from SGC to Gold King as part of a series of transactions under Amendment 4 of a Consent
Decree and Order (the Consent Decree), Case No. 94 CV 5459. Gold King now operates
and maintains the wastewater treatment facility to treat mine drainage from Gold King
properties. Gold King has secured a 25-year lease agreement with San Juan Corporation for
the continued operation of the wastewater treatment facility.