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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />V-6 <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />October 21, 2009 <br />Mr. Craig Harlin <br />Cott er Corporation <br />P.O. Box 3208 <br />Muskogee, OK 74402 <br />Re: Schwartzwalder Mine, Jefferson County, Permit No. M-1977300 Environmental <br />Protection Plan, Technical Revision TR-11, Adequacy Review #1 <br />Dear Mr. Harlin: <br />The Division of Reclamation, Mining and Safety (DRMS) has reviewed the Environmental Protection <br />Plan (EPP) for Cotter Corporation's Schwartzwalder Mine in Jefferson County, which was designated as <br />filed and complete on 16 September 2009. DRMS has concluded that the EPP as submitted does not <br />provide adequate environmental protections as required under Rules 3.1.6, 3.1.7, and 6.4.20. In order to <br />provide an EPP that meets the requirements of the Act and Rules, Operator must revise the EPP to meet <br />the requirements described in the following sections. <br />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />(I) Rule 6.4.20(1) <br />1) The EPP is deficient with respect to Rule 6.4.20(1). The EPP must describe how the Operator <br />will assure compliance with the provisions of the Act and Rules in order to protect all areas that <br />have the potential to be affected by the toxic-forming materials that have been identified on site, <br />while at the same time providing protections required under Rules 3.1.6 (Water - General <br />Requirements) and 3.1.7 (Groundwater - Specific Requirements). <br />The toxic-forming materials that have been identified on site are: <br />(a) Radionuclides in the underground mine pool that are derived from the <br />wallrocks of the underground mine. <br />(b) Radionuclides in the Ralston Creek alluvium that threaten ground water <br />and Ralston Creek. <br />Mine pool: DRMS has determined that the contaminants in the mine pool present a potential <br />hazard to human health, property, and the environment for the following reasons: <br />• The mine pool uranium concentration exceeds the domestic water supply <br />human health standard (CDPHE Regulation 41) by a factor greater than <br />1000 (data from 30 October 2008). The uranium concentration also <br />exceeds both the acute and chronic hardness-based aquatic life standards. <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango <br />Office of <br />Active and Inactive Mines