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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />7373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832$106 <br />June 10, 2004 <br />Ron Thompson <br />Peak Project Management <br />3800 Co. Road 63.9 <br />Trinidad CO 81082 <br />OLORADO <br />(VISION O F <br />INERALS <br />EOLOGY <br />,LAM ATION•NINING <br />SAFETY•ECIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />RE: 2003 Annual Hydrology Report Review, Lorencito Canyon Mine, #C-98-084 <br />Mr. Thompson: <br />The Division of Minerals and Geology has completed review of the 2003 Annual <br />Hydrology Report (AHR) for the Lorencito Canyon mine. After initial approval in 1997, <br />the mine delayed start-up of operations until October 2001. The mine was actively <br />reclaiming during most of 2003. <br />Monitoring Frequency <br />The operator met the approved monitoring frequency in 2003. Alluvial wells and <br />surface sites were visited and sampled for water level or flow and field parameters on a <br />quarterly basis during active operations as required. Samples were taken for laboratory <br />analysis during the second and fourth quarters as required. Water samples were <br />analyzed for the approved analytical list as required. One spring is monitored but was <br />found dry due to the continued drought conditions during 2003. <br />Water Quantity and Quality <br />March 2001 data, as reported in the 2000 Annual Hydrology Report, is the most <br />representative pre-mine data for the stations currently part of the approved hydrologic <br />monitoring program. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />