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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 August 23, 2002 DIVISION O F MINERALS GEOLOGY RECLAMATION MININ G•SAFETY Bill Owens Kye Abraham ~ Governor LKA International, Ine. ~ Greg E. Walther Executive Director 3724 47°i St. Ct. NW Ronald w. Cottony Gig Harbor, WA 98335 ~ ~ Acting Division Director Re: Golden WonderMlne, Permit M-1978 091, Request for Board Hearing for Determination of Need for Permit for Stockpiling of Ore at Offsite Location. ~ ~~S y, _ 1 ~~~~G Dear Mr. Abraham, I received a letter from your contracted onsite operator of the above-named site, Mr. Lance Barker of Au Mining, in which he requests a hearing before the Mined Land Reclamation Board (Board) for a formal determination of the question of the requirement for a permit for the continued future use of a stockpile location at the Vickers Ranch parking lot. A copy of Mr. Bazker's letter is enclosed for your reference. You are aware of this ongoing issue, through copies of my correspondence with Mr. Barker. I am not sure if you also receive copies of his correspondence to me. You and I briefly discussed several things last week on the telephone, during which discussion we determined that two main questions need to be settled: 1) whether the ore stockpile location is a mining activity and must be included within a permit area; and 2) whether the ore stockpile location and stockpiling activity must include environmental protections. You have received a copy of my January 9, 2002 letter, in which I explain in great detail the Division's position that the activity is, in fact, a mining activity and must be included in a permit area, and that there exists potential for uncontrolled surface and groundwater contamination due to weathering and leaching of the acid-producing ore material. This office still maintains that position. Mr. Barker does not share that view, and though I understand his need for a larger and more accessible stockpile location for ore produced at that mine, that need does not translate to an exemption to the permitting requirements and environmental protections, especially required for designated mining operations (DMOs). You seemed to understand the Division's position during our telephone conversation last week, and I was left with the impression that though you authorize Mr. Barker to operate the site and keep the permit in compliance, you did not feel that a request to the Board for what amounts to an exemption to the need for a permit for this stockpile site was really warranted. We discussed several alternatives, with the most viable long term alternative being to add acreage to the permit for the desired stockpile location, through a permit amendment process. The amendment would also have to include an adequate design for a constructed, lined ore storage facility. This brings me to the present matter: Mr. Barker is not the recognized permittee of this site, and without your written consent to have him represent you in this request for a hearing, I cannot schedule the hearing before the Board. Likewise, since the hearing would be for purposes of modifying your permitted operation, without evidence that you have authorized him to, he would not be able to represent you at the hearing. I am not even sure that you had discussed this with Mr. Bazker after our telephone conversation, or were aware of his request for a hearing.