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DEPARTMENT OFTHE ARMY ~/p~VI L~ U.S. ARMY ENGINEER DISTRICT, SACRAMENTO Lp~ y CORPS OF ENGINEERS ~ ~~Cely°V 1325 J STREET SACRAMENTO, CALIFORNIA 95814-2922 )r - FEPLY70 \1t~~ .~ ry ATfENT~ON of ~ July 14, 2003 - "` 1: <~~ Regulatory Branch (199475346, 199475348, 199475349) ~s~~o/~ ~~tl$ G~c ey Mr. David Dillon U/ A ~ l«R ~' 1'i~ '`~ t ~ Sandco, Inc. W1 -- l 9 $ ~- -0 44- `~ -~~-_-- P. O. Box 4440 t,~ R (r 5 r ~ t+'~ I Durango, Colorado 81302 7- ~ TAN S ~ ~~ tC` Dear Mr. Dillon: 's%o l; ~~ ~~ This letter concerns Department of the Army Permit Nos. 199475346, 1994753~~,~nd~ 199475349 for the Dalton, Walker and Willow Bend Pits, which have been extended thro~~I~, and expire on November 30, 2003. The gravel pits are located within the Animas River, La°og Plata County, Colorado. ~ The purpose of this letter is to notify you that if you wish to request an extension of the above permits, you must do so 90 days prior to November 30, 2003, as specified in the permits. In addition, you must demonstrate that your operations are in compliance with the permit conditions in order to receive an extension of the permits for one more year. We do not intend to grant any further extensions of the existing permits past November 30, 2004. Therefore, if you wish to continue mining within the Animas River past November 30, 2004, a new application for an individual permit will be required. We have made this determination because your gravel operation at the Dalton Pit is in substantial non-compliance with permit special condition number 2. In addition, we have determined that it is in the public interest to reevaluate the effects of the in-stream mining operations on the stability and ecology of the Animas River. Furthermore, the monitoring data that has been submitted to our office to date is inadequate to assess the effects of the in- stream mining operations on the river. A copy of potential survey and monitoring procedures that were discussed at our July 31, 2003 meeting is enclosed for your reference. In order for the Corps to make an informed decision on any future permit application, the application must include an analysis of the hydrologic regime and bedload supply of the Animas River, as well as the sustainability of the in-stream gravel operations. You may want to participate with other operators (i.e., Four Corners Materials and/or Hermosa Meadows Gravel) on this study, as it may be advantageous to share costs and information. In addition, a full analysis of practicable alternatives to in-stream mining would also be required. Pursuant to the Section 404(b)(1) Guidelines (40 CFR Part 230):