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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Deparoment of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832.8106 <br />July 14, 2006 <br />Mr. Ed Cooley <br />American Soda, LLP <br />2717 County Road 215 <br />Parachute, CO 81635 <br />RE: American Soda, LLP, Yankee Gulch Minerals Project, Permit No. M-1999- 00 2 <br />Status of Processing Facility and Other Structures ~~/ <br />Deaz Mr. Cooley, <br />RADO <br />O N O F <br />RALS <br />GEOLOGY <br />RECIANATION•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. ('attany <br />Division Director <br />Na[ual Resource Trustee <br />The Division received the 2005-2006 Annual Report for the American Soda, LLP, Yankee Gulch <br />Minerals Project, Permit No. M-1999-002. <br />In the report it states that American Soda has sold the Processing Facility, Access Road Storm Water <br />pond, Septic Leach Field, Electrical Substation equipment and Heliport to EnCana Oil and Gas (EnCana) <br />on September 3Q 2005. In addition, it appeazs that EnCana has constructed other facilifies on the site to <br />facilitate their oil and gas production. <br />The postmining land use for the site is rangeland habitat. Since the Facilities noted above have now been <br />sold to EnCana, please inform the Division how American Soda will achieve reclamation of the site as <br />approved in the reclamation plan. <br />The operator has the following options; <br />1. Provide documentation that American Soda maintains the legal right of entry to reclaim the <br />facilities as approved in the reclamation plan, <br />2. Transfer the permit from American Soda, LLP to EnCana Oil and Gas (however, partial transfer <br />of permits in not allowed. In this case, EnCana will need to apply for a new DMG permit for the <br />mining facilities), or <br />3. Revise the reclamation plan in the form of a permit amendment to change the postmining land <br />use of the facility area from rangeland habitat to industrial/commercial. Once the plan is <br />approved by the Division, then the operator may request that this portion of the site be released <br />(in the form of a formal release request}. <br />If you have any questions, please do not hesitate to contact me at 303-866~t943. <br />incere y, ~~ <br />~~ " <br />Erica S. Crosby <br />Environmental Protection S 'list <br />cc: Car] Mount; DMG <br />Paul Daggett; BLM <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />