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Rules 2.08.3, 2.06.2, 2.06.3, 2.06.5 <br />2.06.7, and 3.02.2(4) <br />Mid-Term Review <br />New Elk Mine -Permit No. C-81-012 <br />This document presents the results of the Divisionof Minerals and Geology (Division) Mid-term <br />review of the New Elk Mine operated by Basin Resources, Inc. This review was conducted to <br />fulfill the requirements of Rules 2.08.3, 2.06.2, 2.06.3, 2.06.5, 2.06.7, and 3.02.2(4). <br />Rule 2.08.3 requires that the Division conduct a review of each permit issued, prior to its <br />Mid-term (2-1/2 years). Based on this review, for good cause shown, the Division may require <br />reasonable revisions or modifications of the permit provisions to ensure compliance with the Act <br />and Regulations. <br />Rules 2.06.2, 2.06.3, 2.06.5, and 2.06.7 require that experimental practices, mountain top <br />removal variances, variances from approximate original contour (AOC), and variances from <br />contemporaneousreclamation, respectively, be reviewed by the Division where applicable during <br />the Mid-term review. <br />Rule 3.02.2(4) requires that the Division review the amount of the bond and the terms of <br />acceptance of the bond every 2-1/2 years. <br />The Mid-term Review of the New Elk mine consisted of a review of the findings document, the <br />permit application and subsequent revisions, stipulations, enforcement actions, and other assorted <br />permit files and information. Also a complete reclamation cost liability analysis was conducted <br />and is included with this review. <br />The document is organized as follows: Section I contains a brief history of the mine. Section II <br />contains a summary of permit actions. Section III is a review of the stipulations attached to the <br />permit. Section N is a review of the enforcement actions issued since Permit Renewal #2 (RN- <br />02). Section V is a summary of the review and a discussion of any problems identified as a result <br />of this review which are required to be resolved. Section VI is a review of the Bond(s) and the <br />reclamation cost estimate. <br />-1- <br />