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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 />6 Apri12005 <br />Tom Sanders -Ranch Manager <br />Castleton Ranch <br />11521 County Road 730 <br />Gunnison, CO 81230 <br />RE: Prospective work at the Ohio Creek Mine No. 2 Property <br />Division File No. C-1980-002 <br />Deaz Mr. Sanders, <br />COLORADO <br />DIVISION O F <br />MIN SRALS <br />GEOLOGY <br />RFOLAMATION•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />I would like to follow-up on our phone conversation of this morning and provide you <br />with more detail regarding the OC #2 Mine and the prospective work the Colorado <br />Division of Minerals and Geology (the Division) would like to plan for the next two or <br />three summers. <br />As you know, located on the Castleton Ranch Property is the site of the OC Mine #2, a <br />small underground mine that has a total of 3.2 acres of surface disturbance and a total <br />permit boundary of approximately 88.5 acres. This mine was permitted to operate under <br />the permanent Colorado Program on 18 January 1982. The OC Mine #2 operated until <br />unfavorable conditions forced it's closure in 1992. The Operator of the mine worked <br />towazds reclaiming the mine but was unable to do so according to the Division's Rules. <br />On 21 February 199b the Colorado Mined Land Reclamation Boazd (the Boazd) revoked <br />the permit and forfeited the bond. The Board then contracted to have the remaining <br />reclamation completed. The reclamation was completed on 22 October 1996. The <br />Division's Rules basically state that there is a (minimum) 10-yeaz period of extended <br />liability following final reclamation and seeding to ensure that the reclaznation is stable <br />and revegetated to the conditions of the permit. The site has been inspected on a regular <br />basis to ensure the stability and quality of the reclamation. <br />As the Division approaches the end of the 10-yeaz liability period (scheduled to end, at <br />this point, on 22 October 2006), there are two items that need to be completed in order to <br />terminate jurisdiction and fully "return" the site to the landowner. <br />The first issue at the OC Mine #2 is in regazds to the sediment pond that remains on the <br />site. The mine reclamation plan states that the pond will be removed. The Division, <br />however, can, with the approval of the landowner, leave the sediment pond. To leave the <br />Office of Office of Colorado <br />Mined Land Reclamation Arrive and Inactive Mines Geological Survey <br />