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:~=; ~ IIIIIIIIIIIIIIIIIII ~ <br />STATE OF <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />Ill 3 Sherman 5L, Room ? 15 <br />Denver, Culorario 80203 <br />Phone: (3031 866-3567 <br />FAX: 13031 8328106 <br />December 16, 1998 <br />Mr. Ron Zumwalt <br />Battle Mountain Resources. Inc. <br />P.O. Box 3l0 <br />San Luis, CO 8 1 152-03 10 <br />RE: San Luis Project (Permit NI-88-112), Reason to Believe a Violation Exists <br />Dear Mr. Zumwalt: <br />~~ <br />DEPARTMENT OF <br />NATURAL <br />RESOURCES <br />Rnv Romer <br />Co~unor <br />lames 5. Lochhead <br />Fecwive Oneaor <br />`.r¢hael B Long <br />Division Duet mr <br />On July 28, 1998, the Division was notified by Battle Mountain Resources, Inc. thak the analysis of the <br />groundwater quality sample taken July 8, 1993 at Point of Compliance Well M-11 R indicated a value for <br />Total Dissolved Solids in excess of the 613 mg/L numeric permit condition. As spe~`ified by the permit, <br />verification groundwater quality samples were subsequently collected at Well M-1 I R ion August 10, 1998 <br />and August 20, 1998. The analyses of both of these verification samples also indicted values of Total <br />Dissolved Solids in excess of the numeric permit condition. <br />The Division believes this is a violation of a permit condition for groundwater pursu~nt to C.R.S. 34-32- <br />124 and within the authority of the Division of Minerals and Geology acting as an ir>Ilplementing agency <br />for groundwater standards thru the provisions of Senate Bill 181. <br />Therefore, the Division has found reason to believe a violation exists to Permit M-88-11 l2 and the Law and <br />has scheduled this matter before the Mined Land Reclamation Board. <br />As a result of Battle Mountain Resources, Inc., withdrawing their waiver of the right try a notice of hearing <br />30 days prior to such a hearing, a Formal Public hearing will be held during the JanL~ary 26, 1999 Board <br />meeting for consideration of the possible violations(s). <br />The hearing will be held at the Embassy Suites Hote, 7290 Conunerce Center, Coloradrb Springs, Colorado, <br />beginning at 9:00 a.m. or as soon thereafter as the matter can be considered anc~ you will have the <br />opportunity to be represented and heard. It will be reiterated that there is reason to believe that you are in <br />violation of the provisions noted above. <br />If the Board finds a violation at this hearing, it may issue a cease and desist order, assess a civil penalty <br />in the amount of $100.00 to $1,000.00 each day of violation or order the permit be spspended, modified <br />