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Mark A. Steen <br />P.O. Box 1523 <br />Longmont, Colorado 80502 <br />Phone: (303) 651-2985 <br />April 7, 2009 <br />Division of Reclamation, Mining & Safety <br />Mr. Allen Sorenson <br />Senior Environmental Protection Specialist <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Y <br /> <br />RE: Gold Hill Mill - Permit No. M-1994-117 v <br />Cash & Who Do Mines - Permit No. M-1983-141 RECFivFp <br />NOI P2004-006 & NOI P2004-007 <br />APR 0 8 I-ituy ? <br />Dear Mr. Sorenson, owisionotKwiamation, <br />wftwdSafely <br />Attached are two letters from Mount Royale Ventures' General Manager, Matt Collins, to <br />Valois Shea at the Environmental Protection Agency that I believe you will find to be of interest. <br />Hidden within Mr. Collins' version of the "significant miscommunication" regarding his <br />permitting and operational activities is the "assumption that the conversations and permit <br />dialogue with Mr. Tom Schreiner allowed backfilling" of "two (2) historic mine openings <br />immediately adjacent" to the Gold Hill Mill permit boundary. In other words, Mr. Collins was <br />supposedly relying on conversations and dialogue with Mr. Schreiner when he began pumping <br />mill tailings into mine workings rather than into the permitted tailings pond. On March 6, 2009, <br />Mr. Collins filed Technical Revision No.6 for the Cash and Who Do Mines Permit No. M-1983- <br />141. He did this in order to resolve a "conflict within the permit documents" and to "obtain a <br />separate Technical Revision to the permit that, in fact, unequivocally addresses the issue" of <br />underground tailings emplacement. <br />I am unaware of any written communication approving the discharge of mill tailings <br />anywhere but inside the lined tailings pond. My review of the Gold Hill Mill permit file does not <br />indicate that the DRMS was ever requested to allow the discharge of tailings off the permitted <br />millsite. In fact, just prior to the August discharge into the prospect holes, Mr. Collins filed the <br />Annual Report for the Gold Hill Mill on July 25, 2008 with his standard statement that "MRV <br />continued to operate the Gold Hill Mill as a zero-discharge facility." I cannot find anything in the <br />Rules and Regulations that would allow an NOI to be converted to a permitted tailings disposal <br />site. Apparently, every historic mine and prospect pit located within the area encompassed by the <br />Prospecting Permits was a potential tailings disposal site as an "associated mine working" under <br />the UIC-Class V Permit that Mr. Collins obtained from the EPA. None of the affected <br />landowners were notified by MRV of its plans to dispose of mill tailings in any of their mine <br />workings. The two prospect holes that were filled with mill waste pumped directly from the <br />tailings pond are in close proximity to the monitoring wells that are used to determine the <br />Pagel of 3