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i <br />9 <br /> <br /> <br />STATE OF <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: 1303) 8663567 <br />FAX: (303)832-8106 <br />October 4, 1999 <br />Mr. Bill Lyle, Director of Environmental Affairs-U.S. <br />Battle Mountain Gold Company <br />P.O. Box 1627 <br />Battle Mountain, NV 89820 <br />RE: San Luis Project (Permit M-88-112) Notice of reason to believe that there is reasonable potential for further <br />degradation of groundwater quality <br />Dear Mr. Lyle: <br />Greg E. Walther <br />Executive Direuor <br />Michael B. long <br />Dimvon Director <br />Recent conversation with the Water Quality Control Division (WQCD) has established that the Division of <br />Minerals and Geology (DMG) remains responsible for the protection of groundwater quality in the Ritb Seco <br />alluvial aquifer at the San Luis Project. As a consequence of that discussion and pursuant to procedure$ prescribed <br />by Rule 3.1.7 (3), this letter is to serve as notice to Battle Mountain Gold Company and Battle Mounta~rl Resources, <br />Inc. that the DMG has reason to believe, hazed on evidence, that there is or may be a reasonable potential for <br />degradation of groundwater quality in the Rito Seco alluvial aquifer down gradient of monitoring wells M-I I R and <br />M-31 at the San Luis Project (Permit M-88-112). <br />Battle Mountain Resources, Inc. (BMRl), as operator of the San Luis Project, is hereby also notified thpt there is a <br />need to modify Permit M-88-112 to include permit conditions protective of the quality of groundwater~irt the <br />uncontaminated portion of the Rito Seco alluvial aquifer down gradient of wells M-11R and M-31. BN~RI is also <br />directed, by this notice, to submit within 90 days of this notice the necessary information that will lead to the setting <br />of those permit conditions as well as the establishment of appropriate point(s) of compliance. <br />Sincerely, / ~_ <br />// // ' y.-t.C --t <br />H. Bruce Humphries /1 <br />Supervisor, Minerals Program <br />The provisions of C.R.S. 34-32-I 16 (7) (g) and Rule 3.1.6 require that disturbances to the prevailing h}idrologic <br />balance of the affected land and of the surrounding area and to the quantity or quality of water in surfs a and <br />groundwater systems both during and after the mining operation and during reclamation be minimized.) Following <br />the exceedance of permit conditions for groundwater quality at well M-1 lR in late 1998, the Colorado ivlined Land <br />Reclamation Board ordered Battle Mountain Resources, Inc. (BMRI) to submit a Technical Revision tq the permit <br />for the San Luis Project proposing specific actions that would provide for the future protection of grout(d and <br />surface water quality in the area of the West Pit. The DMG expects BMR] to include in that permit revision <br />measures to protect the quality of groundwater in the uncontaminated portion of the Rito Seco alluvial aquifer. The <br />effectiveness of those meazures will be monitored by means of the permit conditions and point(s) of compliance <br />now being required for that aquifer. <br />RADO <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MI NING•SA FE TY <br />sill ovens <br />Governor <br />cc: David Holm, WQCD <br />David Akers, WQCD <br />Cheryl Linden, AG's Office <br />