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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 />Mazch 16, 2004 <br />Mr. Ed Cooley <br />American Soda, LLP <br />2717 County Road 21 S <br />Parachute, CO 81635 <br />RE: American Soda, LLP, Yankee Gulch Minerals Project, Pemut No. M-1999-002 <br />We1121-16 <br />Dear Mr. Cooley, <br />COLORADO <br />DIVISION O F <br />MIN)sRALS <br />GEOLOGY <br />0.EC LANATIO N•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive DIfeC[Of <br />Ronald W. Cottony <br />Division Director <br />Naturzl Resource Tmstee <br />American Soda submitted a letter on Mazch 18, 2004 notifying the Division that We1121-16 <br />experienced a sudden decrease in production return and a drop in injection and production <br />pressure. The Division received the letter on Mazch 22, 2004. It appears from correspondence <br />between American Soda and EPA that we1121-161ost mechanical integrity on Mazch 15, 2004. <br />Please be reminded that the production wells at the Yankee Gulch Mine aze considered <br />Environmental Protection Facilities designed to contain or control designated chemicals or <br />process solutions. Under such designation, the operator must notify the Office as soon a <br />reasonably practicable, but no later than 24 hours, of knowledge of failure or imminent failure <br />of any of the production wells. American Soda should report all failures or imminent failures <br />by telephone within 24-hours in accordance with Rule 8.2 of the Hazd Rock/Metal Mining <br />Rules and Regulations. After the situation is reported, American Soda shall provide a written <br />report of the event to the Office. <br />In addition, for future reference please send two copies of all correspondence to the Division. <br />Please see attached DMG Bulietin for additional detail. <br />If you have any questions, please do not hesitate to contact me at 303-866-4943. <br />ricE a S. Crosliy~~ <br />Environmental Protection ecialis <br />cc: Carl Mount; DMG (via a-mail) <br /> <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />