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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />Z <br />March 17, 2008 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Colorado Department of Public Health and Environment Harris D. Sherman <br />Executive Director <br />Water Quality Control Division Ronald W. Cattany <br />Attn: Mr. David Akers d Division Director <br />4300 Cherry Creek Drive So. Natural Resource Trustee <br />Denver, CO 80246-1530 <br />RE: Battle Mountain Resources Inc.; San Luis Project; DRMS File # M-1;88-112; <br />vAmendment 03; CDPHE jurisdictional position on future regulatory authority for <br />proposed land application amendment. <br />Dear Mr. Akers: <br />I am writing regarding the meeting that we had on February 7, 2008 concerning the Battle <br />Mountain Permit Amendment #3 that was submitted to the Division of Reclamation, <br />Mining, and Safety, with a copy provided to you at our meeting As a reminder, the <br />meeting sought to establish which state agency, DRMS, WQCD or HMWMD/Solid <br />Waste, would maintain or assume future regulatory oversight of the site in the event the, <br />amendment is approved and Battle Mountain begins to store untreated water in a lined <br />impoundment pit on site and pump water via pipeline to the Salazar Ranch for <br />agricultural land application. <br />The public comment period on the amendment ended on March 3, 2008. As expected, <br />there were numerous objectors to the amendment, including the Town of San Luis, the <br />School Board, and the Board of County Commissioners. In order to fully address some <br />of the concerns of the objectors, the Division feels that it is important that the future <br />regulatory jurisdiction over Battle Mountain be determined prior to the extensive public <br />involvement the Division anticipates being necessary in this matter. In other words, the <br />Division would like to be able to inform the public which agency will be charged with <br />regulatory responsibility once Battle Mountain finishes the construction of the land <br />application facilities and seeks bond release from the Division. <br />The February 7"' meeting ended with some uncertainty as to whether WQCD or <br />HMWMD/Solid Waste would assume regulatory responsibility as a single agency, or if <br />there would be dual regulation by both agencies. It was stated that it is conceivable that <br />Solid Waste could assume jurisdiction over the water impoundment pit located on the <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines