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Mid-Term Review <br />New Elk Mine -Permit No. C-81-012 <br />This document presents the results of the Division of Minerals and Geology (Division) <br />Mid-term review of the New Elk Mine operated by Picketwire Processing, Inc. This review <br />was conducted to fulfill the requirements of Rules 2.08.3, 2.06.2, 2.06.3, 2.06.5, 2.06.7, <br />and 3.02.2(4). <br />Rule 2.08.3 requires that the Division conduct a review of each permit issued, prior to its <br />Mid-term (2-1/2 years). Based on this review, for good cause shown, the Division may <br />require reasonable revisions or modifications of the permit provisions to ensure compliance <br />with the Act and Regulations. <br />Rules 2.06.2, 2.06.3, 2.06.5, and 2.06.7 require that experimental practices, mountain top <br />removal variances, variances from approximate original contour (AOC), and variances from <br />contemporaneous reclamation, respectively, be reviewed by the Division where applicable <br />during the Mid-term review. <br />Rule 3.02.2(4) requires that the Division review the amount of the bond and the terms of <br />acceptance of the bond every 2-1/2 years. <br />The Mid-term Review of the New Elk mine consisted of a review of the findings document, <br />the permit application and subsequent revisions, stipulations, enforcement actions, cost <br />estimate and other assorted permit files and information. <br />• Section I contains a brief history of the mine. <br />• Section II contains a summary of permit actions. <br />• Section III is a review of the stipulations attached to the permit. <br />• Section IV is a review of the enforcement actions issued since May 2004. <br />• Section V is a summary of the review of the permit application. <br />• Section VI is a review of the Bond(s) and the reclamation cost estimate. <br />Section I -Mine History and the Environment <br />The New Elk Mine is located approximately 24 miles west of Trinidad, Colorado. <br />Highway 12 bisects the permit area. Previously known as the Allen Mine, it has been in <br />existence since 1951 and was operated under an interim permit issued by the Colorado <br />Mined Land Reclamation Division (the "Division") on January 25, 1978, pursuant to the <br />Colorado Mined Land Reclamation Act. <br />The New Elk mine permit has been transferred on three occasions. Permit rights were <br />-1- <br />