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<br /> <br />DIVISION OF MINERALS AND GEOLOGY <br />Drparlmenl ui Nalu qil Fesowces <br />I I l i Shrnna„ til , Huum ? I S <br />Dcnvcr, ( uluradu HI1101 <br />Phone. 1 III {I 7~bL~ lShi <br />FA\ 11011 N1'-NI Ofi <br />April 4, 1997 <br />Mr. Harry Covey <br />P.O. 13ox 207 <br />Kearney, AS 85237-0207 <br /> <br />IIIIIIIIIIIIIIIIIII OF COLORADO <br />. I~~~~ <br />DEI'.AKTMENT OI <br />NATU}ZAI <br />RESOURCE' <br />Kot Hrirn <br />l,~n, nun <br />fariu.~ 1.„hh~~.id <br />L......„ u,~, ~ ~,,, <br />~",r1~,,,,iu i~~~~~ <br />RE: ]?ermit Status, Phil Sheridan #2 Lode <br />1?ile No. M-88-081 <br />Dear Mr. Covey: <br />The Division received your letter on March 17, 1997 stating your <br />intent to transfer the permit from East-West Mining Company (EWM) <br />to yourself. You also inquired if the permit is in good standing <br />and i1° there are any outstanding violations for the Phil Sheridan <br />Lode. The $75.00 annual fee for 1996 was received on September 10, <br />1996 :.o the permit is current. The next annual fee and report will <br />be due by the anniversary date of August 18, 1997. <br />After reviewing the file, I can tell you that there are no <br />outstanding violations for the site, however, there are two issues <br />to be aware of. <br />In a May 24, 1996 inspection report, the Division of Minerals and <br />Geology (DMG) found a problem involving the disposal of waste rock <br />in a historic shaft outside the permit area. The corrective action <br />requii:es the operator to ensure that all future waste rock disposal <br />be contained within the permit area in accordance with the approved <br />mine plan. In addition, the operator may need to complete some <br />reclamation in the backfilled shaft area. This will be determined <br />during a future inspection. <br />The sE~cond issue involves potential mine water discharge from the <br />Phil Sheridan Tunnel. EWM informed the DMG on January 23, 1996 <br />that they had connected their shaft collared in the pe rnlit area <br />with the pre-existing Phil Sheridan Tunnel. The file indicates <br />that there have been discharges from the historic tunnel during <br />previous years of relatively high precipitation. Because the <br />permitted operation and the historic tunnel are connected, the <br />operator may be responsible for obtaining a discharge permit. <br />