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• ~II ~I~~II~I~~~~~~~~ 999 ®® Banks and Gesso, LLC ®® November 8, 2001 RECEIVED NOV 13 2001 Dirkion of Minerals and OeoloBY Ms. Erica Crosby Division of Minerals and Geology 1313 Sherman Street, Room 215 Denver, Colorado 80203 720 Kipling St.,Suite117 Lakewood, Colorado 80215 (303)274-4277 Fax (303) 274-8329 www. banksandgesso.com Subject: 124'" Estates Sand and Gravel Mine 112 New Permit Application -Response to Adequacy Review No. 2, File No. M-2001-085 Dear Erica, Attached is the response of the 124`h Estates Partners to the Division's second Adequacy Review letter, dated November 5, regarding the Applicant's submittal for a New 112 Permit to resume and complete mining at the historic mining site located in Henderson, Colorado. The response follows the form of the Adequacy Review letter. As the applicant responds to the Division's Adequacy Review, it is also working with site neighbors to resolve their concerns/objections, with the goal of avoiding a hearing before the Mined Land Reclamation Board in December. Neighbors' concerns are generally within the issues raised by the Division; and at present, the Division recognizes two objectors, the Henderson Water Ski Club and Daryl and Joyce Billings. Because the applicant's efforts to resolve the concerns/objections of the neighbors are intertwined with issues raised by the Adequacy Review process, following is a short summary of the applicant's work with these two neighbors. Henderson Water Ski Club (Carlo Gaines and Tom Krueger). It appears that, as spokesmen for the Club, both Mr. Gaines and Mr. Krueger are happy that mining will occur in a relatively short period and that the proposed end use is for water storage. They realize that development of this location will eventually occur, and the Water Ski Club is happy with the proposed mining project and development for water storage, in light of the many alternatives that they can imagine. By phone, Mr. Gaines stated that he was happy with the applicant's offer to dewater to the water ski pond, as this would maintain water level in the ski pond during mining and reclamation and would allow recharge of shallow groundwater in the immediate area of the mine. Mr. Gaines stated that his 'objection' by a-mail, dated September 19, 2001, was meant as a general statement to the Division that when dewatering occurs in this type of operation, local groundwater should be recharged. Mr. Krueger adds to Mr. Gaines statement a concern that, after the clay liner is installed within the mine, the sealed reservoir may create a downstream shadow in groundwater, causing reduced surface levels on the water ski pond. To address this concern, the applicant has proposed to install three monitoring wells in the area of the mine. A monitoring schedule to measure groundwater elevation in these wells and in the ski pond has been proposed, so that any'shadow' effect can be discerned. The applicant initially proposed a 2 foot decrease in pond surface elevation and then acceded to a 0.5 foot decrease, ariributable to mining, as a'trigger' for mitigative steps, although Mr. Krueger states that the Club's membership now desires 'zero effects from mining'. The applicant and Mr. Krueger have agreed that mitigation, if required, could include the discharge of water to the pond from a local source and/or physical deepening of the ski pond by the applicant. These steps are discussed in the following response to the Division.