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STATE OF <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Nmural Resources <br />I l1 3 Sherman 51.. Roam 21 5 <br />Denver, Culnrario H0203 <br />Phone: (3071 86L~3567 <br />FAx: 17011 H7?-HIO6 <br />December I. 1998 <br />Mr. Ron Zumwalt <br />Battle Mountain Resources. Inr. <br />P.O. Box 310 <br />San Luis. CO 81 172-0310 <br />~_ <br />RE: San Luis Project (Per 't iV1-88-11~ ,Reason to Believe a Violation Exists <br />Dear Mr, Zumwalt: <br />~~~~~ <br />DEPARTMENT OF <br />PJATURAL <br />F:ESOURCES <br />Ray Romer <br />Governor <br />lames 5. Lochhead <br />E,:ecuuve Dvector <br />v ichael B. Lonx <br />Dmision Dneaor <br />On July 23, 1993, the Division was notified by Battle Mountain Resources. Inc. that the analysis ofnhe eroundwater quality <br />sample taken July 8, 1993 at Point of Compliance Well M-1 IR indicated a value for Total Dissolved Solids in excess of the 613 <br />me/L numeric permit condition. As specilied by the permit, verification eroundwater quality sa ples were subsequently <br />collected at Well M-1 I R on August 10, 1998 and August 20. 1993. The analyses of both of these~erification samples also <br />indicated values of Total Dissolved Solids in excess of the numeric permit condition. <br />The Division believes this is a violation of a permit condition for eroundwater pursuant to C.R.S. 3~3-32-124 and within the <br />authority of [he Division of Minerals and Geology acting as an implementing agency for groundy+ater standards thru the <br />provisions of Senate Bill 181. <br />Therefore. the Division has found reason to believe a violation exists to Permit M-88-I I2 and the LaW and has scheduled this <br />matter before the Ivfined Land Reclamation Board. <br />Because Battle Mountain Resources, Inc. is waiving their right to a notice of the hearing 30 days prior tp such I:earing, a Formal <br />Public Hearin, will be held during the Uecember 16 - 17, 1998 Board meeting for consideration of phe possible violation(s). <br />The hearing will be held in Room 313 of 1313 Sherman Street, Denver, Colorado, beeinnin,~, al 9:00 .m. or as soon thereafter <br />as the matter can be considered and you will have the opportunity to be represented and heard. It wi~l be reiterated fiat there <br />is reason to believe that you are in violation of the provisions noted above. <br />[f the Board finds a violation at this hearing, it may issue a cease and desist order, assess a civil penalty {n the amount of $100.00 <br />to $1,000.00 each day of violation or order the permit be suspended, modified or revoked. in addition) it may set the matter for <br />consideration of forfeiture of the $6,100.000.00 watramy at a subsequent hearing if the required crDrrective actions are not <br />performed. If you have evidence indicating that the possible violation(s) noted above du not exist or hate been corrected, please <br />provide it to us as soon as possible or bring it to the hearing. <br />iFyou have any questions, please contact James Stevens. <br />Sincerely. <br />Michael B. Lo <br />Division Dirccux <br />CERTIFIED MAIL NO. Z 191 597 159 <br />Return Receipt Requested <br />Cc: David Holm, WQCD <br />4. \uss\pmm\cemp\83111 rcb.lcs. doe <br />