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<br />July 9, 2008 <br />CENE <br />JUL 18 2008 <br />Division o'r Reclamation, <br />Mining and Safety <br />4'ed <br />JUL 1 1 2008 <br />Ms. Kate Pickford <br />Colorado Division of Reclamation, Mining & Safety - Durango Field Office <br />691 C.R. 233, Unit A-2 <br />Durango, CO 81301 <br />Re: File # M-1987-038 - Response to Second Adequacy Review <br />Dear Ms. Pickford, <br />The following is in response to your letter of June 16, 2008; the issues are addressed in <br />the same numerical order as in your letter: <br />It was determined that the USGS section number was in fact S. 14U and not S.14 <br />as appeared in the original noticing. A corrected public notice was republished in <br />the local newspaper pursuant to Rule 1.6.5 (2). The last date of publication was <br />June 19, 2008. Likewise, the adjacent easement holders were personally served <br />with the corrected notice. <br />Proofs of these re-notifications are attached. <br />2. The questions raised regarding the Operator's compliance with Colorado water <br />law and specifically adherence to the augmentation plan are not applicable to the <br />proposed amendment to this permit. The depths of gravel reserve extraction in the <br />area currently being mined and in the proposed amended area have not <br />encountered groundwater. Exhibit D-Mining Plan (c), states that "Other than <br />stormwater containment, no diversion or impoundment of water is anticipated." <br />Thus, no increase in the surface area of the ponds is anticipated with this <br />amendment to the permit. <br />A recent survey of the existing pond surface area revealed that the applicant is <br />in full compliance with the permitted 28.39 acres. <br />While the applicant/ operator does not own the water rights applicable to the <br />current plan of augmentation, a water lease agreement to supply all water <br />necessary for augmentation is in effect with Don L. Gosney and Gosney & Sons, <br />Inc. <br />Lastly, regarding impacts to unclassified groundwater quality: The applicant/ <br />operator has an NPDES permit in place under which daily inspection, weekly and <br />monthly monitoring and sampling are performed. Sampling is done at the <br />discharge point of the lower pond (Gosney Reservoir #2). Reports and analyses <br />'Office <br />Divislon ?7 4C9?i718ti?f),. <br />mining and Safety