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ATTORNEYS ~~~ <br />Ry1ey Oarlock & Applewhite ~ 1999 Broadway <br />A PROFESSIONAL ASSOCIATION ~ Suite 1800 <br />,' ®~Bie~er, Colorado 80202 <br />~q one 303-863-7500 <br />N 2 8 ?448 Facsimile 303-595-3159 <br />Divisi <br />John W. Watson ~i~ing aRa Sa ration Offices in: <br />Duect Line: 303-813-6722. <br />E-mail: jwatson@rcalaw.com tY Phoenix, Arizona <br />Denver, Colorado <br />www.rcalaw com <br />January 16, 2008 <br />Scott Wilkonson <br />Assistant Attorney General / JAN 1 8 2008 <br />Office of the Attorney General / GRAND JUNCTION FIELD OFF{CE <br />Natural Resources & Environment Section DIVISION OF <br />Office of the Attorney General RECLAMATION MINING & SAFETY <br />1525 Sherman Street, 2nd Floor <br />Denver, Colorado 80203 <br />,~ <br />Re: Cotter Corporation's Uranium Mines JD-6, JD-8 JD-9, and SM-18. Acid <br />Mine Drainage Potential ~i~(, 1`~SN _.p~y „/ <br />Dear Mr. Wilkinson: <br />As we have discussed, Cotter has gathered and analyzed samples of waste rock and ore from <br />its uranium mines on the west slope. The purpose of the report attached hereto is to provide <br />relevant data and technical analysis for the statutory exclusion (see C.R.S. Section 34-32-103 <br />(3.5) (b)) of the Cotter Mines JD-6; JD-8, JD-9, and SM-18 (Cotter Mines) as Designated <br />Mining Operations (DMO). C.R.S. Section 34-32-103 (3.5) (b) states in part, "Such mining <br />operations exclude operations which do not use toxic or acidic chemicals in processing for <br />purposed of extractive metallurgy and which will not cause acid mine drainage." It is <br />undisputed that the Cotter Mines do not use toxic or acidic chemicals in processing for <br />purpose of extractive metallurgy. In addition, based on the analyses contained in this report, <br />Cotter submits that acid mine drainage will not occur as a result of mining operations at the <br />Cotter Mines, and that the Cotter Mines, thus, should not be considered DMOs. <br />Sincerely, <br />w ~~ <br />J L. Watson <br />Copies: (w/ enclosures) <br />Travis Stills <br />Jeff Parson <br />1Zt~ss F Bans--; <br />Dave Barry <br />