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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 24, 2005 <br />Glen Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, Colorado 81424 <br />Re: Review of Permitted Sites, Permit No.'s M-1977-306, M-1977-310, and M-1984-014, <br />"Designated Mining Operation" Status Is Not Required. <br />Dear Mr. Williams: <br />OLORADO <br />I V 15 1 0 N O F <br />IN &RALS <br />EOLOGY <br />:LAM ATION•M1NWG <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive DlreCtOr <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />To Ensure <br />The Division of Minerals and Geology (Division) is pleased to hear that mining operations have once again been <br />.undertaken at the permitted sites noted above. Due to the length of time and change in goals since these sites <br />were permitted, the Division has instructed staff to review all permits to ensure that the sites comply with all <br />applicable rules and regulations. Originally, the 3 sites noted above were mothballed and slated for little activity or <br />reclamation. Under current economic conditions, Cotter has resumed mining operations, which must now be <br />reviewed as noted. <br />The primary issue of concern to the Division is whether current activities will place the permitted sites in the <br />"Designated Mining Operation" (DMO) category under CRS 34-32-112.5, Rule 6 and 7 of the Hard Rock /Metals <br />Rules. Please find enclosed a copy of the statute and rules pertaining to "DMO" designations. Staff asks that <br />Cotter please review its permits in regard to DMO regulations and be ready to address any issues concerning the <br />Rules. Rule 3.1.7 which is specific to groundwater was not in effect when the.permits were originally approved, but <br />the Division now will ask that the Rule be addressed. The Division would like to make it clear that.no issues have <br />been identified, but a thorough review is in order under the circumstances. <br />Waste rock characteristics, disposal, ore storage and groundwater issues are specific issues under current site <br />activities that may have significant surface impacts that may need to be reflected in bonding for reclamation liability. <br />Staff will review mining and reclamation plans with Cotter to ensure Rule compliance and adequate bonding is in <br />place. <br />Staff will be contacting Cotter in early March to set up site inspections and permit reviews. for the 3 noted permitted <br />sites. <br />If you need additional information, please contact meat the Division of Minerals and Geology, Grand Junction Field <br />Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117. <br />Sincerely, <br />G. Russell Means <br />Environmental Protection Specialist <br />Cc: Bruce Humphries, Minerals Supervisor, Denver Office (e-mail) <br />Cc: Carl Mount, Senior Environmental Protection Specialist, North Team, Denver Office (e-mail) <br />Cc: Allen Sorenson, DMG Mining Engineer, Denver Office (e-mail) <br />Office of Office of Colorado <br />