2007-06-21_REVISION - M1982020

• Permit No: M1982020
• IBM Index Class Name: Revision
• Doc Date: 6/21/2007
• Doc Name: Lease Agreement
• From: Elmo Nossaman
• To: DRMS
• Type & Sequence: SO1
• Media Type: D
• Archive: No

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STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: (303) 86G-3567
FAX; [phone]
COLORADO
DIVISION OF
RECLAMATION
MINING
- &-
SAFETY
Bill Owens
Governor
May 22, 2007
Russell George
Executive Director
Elmo Nossaman Ronald W. Cattany
P.O. BOX 1$449 Division Direttor
Oklahoma City, Oklahoma 73155 Natural Resource Trustee
Re: Lucky Strike Lode, Permit No. M-1982-020, Succession of Operator (SO) Request.
Dear Mr. Nossaman;
On February 5th, 2007, the Division of Reclamation, Mining and Safety received your request for a Succession of
Operator for the above referenced permit. You have requested that the Division recalculate the reclamation liability for
the site under option A. As noted on March 7"', 2007 weather and access restrictions prohibited the Division from
visiting the site to conduct an inspecsion to evaluate current conditions in order to calculate an accurate Reclamation
Liability Estimate until late April or May. Staff is now starting the process of completing the SO review.
Two unresolved issues must be corrected prior to any approval of the Succession of Operator.
1) The Division must have clear documentation showing Elmo Nossaman is in control of any and all mines
bringing ore to the milk Alternatively, if you are going to be leasing the site to a mining company, then the
Division needs a copy of the lease between the two parties. If not already provided, documentation of control
of any mines bringing ore to the site by the leasee will be required as well, Without this documentation, the
Division may have no choice but to submit the information to Gunnison County for possible Custom Mill
Status consideration due to the fact, that by definition, the site appears to be one.
2) The Division has requested geo-chemical analysis of any and alt ores at the site as well as the tailings being
pumped to the tailings pond. The Division received assay repotts which are insufficient to determine the
possible long term environmental impacts. The analysis must be done by a state certified laboratory and by
approved EPA protocol such as a Synthetic Precipitation Leachate Process (SPLP) or the Nevada Meteoric
Test (Nevada Test). For specific analyzes and a discussion on the best procedure, it would be best to contact the
Division's Geo-Chemist, David Bird at 303.866.3927. Without the geo-chemical analysis, IheDivision cannol
accurately determine what method of reclamation is required and calculate the reclamation bond for approval
of the SO.
Other issues are minor and can be corrected without impacting the decision process on the SO from Lucky Strike Lode
to Elmo Nossaman. However, the two noted issues must be addressed otherwise the process cannot go forward. The
Division is giving you 60 days from the date of this letter, which will be July ZO`h, 2007, to submit the requested
documentation otherwise the requested SO may be denied.
Office of Office of
Mined Land Reclamation Active and Inactive Mines