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~~ti, ~~m, 9rm STATE OF COLORADO DIVISION OE MINERALS AND GEOLOGY .~ Department of Natural Resources 7 37 3 Sherman St., Room 27 5 C O L O RA D O Denver, Colorado 80203 DIVISION O F Phone: (3031 aev-3se~ M I N E RA L S FAx: (303) 832-8106 G E O L O G Y REC LAMATION•MINING SAFETY•SCIENCE July 25, 2005 Bill Owens Governor Russell George Mr. Glen Williams / Executive Director Cotter Corporation / Ronald W. Canany P. O. BOX 700 Division DIreClor Nucla, Colorado 81424 Natu21 Resource Trustee RE: "Notice of Determination That Cotter Operation, File No. M-1977-306, Also Known as JD-9 MINE, is a Designated Miming Operation (DMO) Dear Mr. Williams: As a result of a review of Cotter operational conditions, to include pertinent site geology and geochemistry, associated materials being or to be extracted, chemicals and reagents proposed for use or in use, and other applicable file documents, the Division has detem3ined that your proposed or existing operation, File No. M-1978-116, is a Designated Mining Operation (DMO). This determination is made in conformance with the provisions of Rule 7.2 of the Minerals Rules and Regulations of the Colorado Mined Land Reclamation Board. Specifically, the determination that your operation is a DMO is based on the following: • The Act at 34-32-103(1) defines "acid or toxic producing materials" as "natural or reworked earth materials having acid or toxic chemical and physical characteristics." The results from SPLP tests submitted June 280', 2005 indicate that waste rock from the JD-9 Mine have a potential to release metals in concentrations that exceed ground or surface water standazds for aluminum, azsenic, lead, and selenium. Thus, these rocks would be considered "acid or toxic materials" under the definition. • The Act at 34-32-103(3.5)(a)(II) defines a "designated mining operation" to be "a mining operation at which acid- or toxic-forming materials will be exposed or disturbed as a result of mining operations." Mining will expose or disturb acid-or toxic-forming materials from the JD-9 waste rock. Thus, the JD-9 MINE meets the criteria for a designated mining operation. • The Act at 34-32-103(3.5)(a)(II) defines a "designated mining operation" to be "a mining operation at which acid- ortoxic-forming materials will be exposed or disturbed as a result of mining operations" Effluent from mine dewatering Office of Office of Colorado Mined Land Reclamation Active and Inactive Mines ~ Geological Survey