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~a-x.e~ <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparhnent of Naural Resources <br />7313 Sherman St, Room 215 <br />Denver, Colorado 8[1203 <br />Phone: (303) 866-3567 <br />FA%: (303) 832.8106 <br />22 February 2006 <br />Jim Kiger <br />Oxbow Mining, LLC <br />3737 Highway 133 <br />Somerset, CO 81434 <br />Re: Elk Creek Mine (Permit C-1981-022) <br />Minor Revision 76 (MR-76) <br />Responses to 14 September 2005 OMI Submittal <br />Dear Mr. Kiger, <br />COLORADO <br />DIVISION O F <br />MINIiRALS <br />GEOLOGY <br />FFCLANATION•NININE <br />FAFETY•FCIENCF <br />gal owe <br />car <br />Russell George <br />Executive Director <br />Rarald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />The Division has received Oxbow Mining LLC's (OMLLC) submittal of Minor revision <br />76. Thank you for your prompt submittal of this revision. The Division has the <br />following adequacy questions. <br />1. In the AHR section of the PAP, OMLLC commits to monitoring and reporting <br />the amount of water transferred from the D-Seam of the Elk Creek Mine to the <br />B-Seam workings of the abandoned Somerset Mine. There is nothing, <br />however, in this section that describes how OMLLC will measure the water <br />levels in the B-Seam workings or how the amount of water transferred to the <br />B-Seam workings will be monitored and measured. Please include a <br />description of how water levels in the B-Seam workings will be measured <br />and how water transferred to the B-Seam workings will be monitored <br />and measured. <br />2. With respect to the "utility" hole drilled at the Hubbard Creek Fan site, the <br />Division is requesting OMLLC to assess whether it is necessary to address <br />Rule 4.07.2 -Temporary Sealing of Boreholes. Specifically, the Division is <br />concerned that this borehole is temporarily inactive but has further intended <br />use. If this is the case, the borehole must be temporarily sealed in accordance <br />with the Rules. <br />3. The Division calculated a reclamation cost estimate for the D-Seam "utility" <br />borehole included in Minor Revision 76. Additionally, the Division also <br />calculated a reclamation cost estimate for the boreholes approved in Technical <br />Revision 51. The "utility" borehole estimate includes plugging and sealing a <br />53-foot well that is cased with 7-5/8" casing. The first part of the TR-51 <br />estimate is for the sealing of the two water transfer wells -the B-Seam <br />Once of Offite of Colorado <br />Mined Land Reclamation Active and Inattive Mines Geological Survey <br />