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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, Coorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />COLORADO <br />DIVISION O F <br />MIN&RALS <br />GEOLOGY <br />0.FClA NATION•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Anaeai of Division of Minerals and Geoloev Determination of Designated Russell George <br />Mining Status of Cotter Coraoration's JD-9Mine. M-1977-306 Executive Director <br />Ronald W. Cottony <br />Division Director <br />On March 9`", 2006 the Division of Minerals and Geology made a Final Determination `al Resource rmstee <br />that the Cotter Corporation's JD-9 MINE, permit number M-1977-306 is a Designated <br />Mining Operation (DMO). The Decision was based on a review of geotechnical and <br />hydrological modeling that did not satisfactorily demonstrated to the Division that no <br />adverse affects to health, property or the environment from metal constituents contained <br />in the waste rock or temporary ore stockpiles is or will be created during or after mining <br />is complete. <br />The process used by the Division for the basis of the Final Decision is based on <br />requirements of Rule 7.2.4. Cotter Corporation did not agree with the initial findings of <br />the Division, which indicated DMO status appeared to be warranted based on Synthetic <br />Precipitation Leachate Procedure (SPLP) testing. The test showed elevated levels of <br />Aluminum, Lead, Selenium, and Arsenic in waste and ore samples taken from the mine <br />site. Per Rule 7.2.4(1), Cotter notified the Division by written letter of this dispute within <br />30 days. <br />Per Rule 7.2.4(1)(a), the Division and Cotter met to discuss the findings and outline the <br />Division's concerns. Cotter initiated a study with the help of GeoSciences, Inc. to create <br />a hydrological model and a report to address the Division's concerns. After two reviews <br />and an amended report was submitted to the Division, and the Division accepted the <br />modeling and report as demonstrating that no adverse affects to human health, property <br />or the environment appear to occur from the mining operation. Therefore, the Division <br />made a Final Determination as per Rule 7.2.4(1)(a) that the mine was aNon-DMO. The <br />Final Decision was Noticed in the April 2006 Agenda of the Mined Land Reclamation <br />Board as required under the Rule. <br />Cotter has filed an appeal of the Final Determination per Rule 7.2.4(2). This matter <br />comes before the Board today to set a date for a formal Public Hearing of the appeal. <br />Cotter Corporation and Division Staff would like to request that the Hearing be set for <br />August to allow time to prepare for the appeal and /or be coordinated with other Cotter <br />DMO hearings. Concurrently, Cotter is developing a monitoring program and gathering <br />additional information that may clarify some outstanding issues. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />