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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 />April 12, 2010 <br />Keith Emmett <br />Mount Sneffels Mining Company <br />318 South Scenic Hwy, Ste 104 <br />Lake Wales, FL 33853 <br />Karmen King <br />Grayling LLC <br />18050 Road G <br />"scoop <br />APR 22 2010 <br />n, <br />MW sod Slftty <br />COLORADO <br />D I V I S ION 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 />Cortez, CO 81321 <br />r <br />RE: Technical Revision No. 2 (TR-02) Denied, Ruby Trust Mine, Permit No. M-1979-181. <br />Dear Mr. Emmett and Ms. King: <br />The Division of Reclamation, Mining and Safety (Division) received the original request for Technical <br />Revision No. 2 (TR-02) to the Ruby Trust Mine on October 24, 2008. The original submittal included a one <br />page cover letter, one page of text, and one map. Under TR-02, Mount Sneffels Mining Company <br />(Operator) requested to add a crusher to an existing underground mill facility and dispose of mill tailings <br />underground in the mine workings. <br />The Division has conducted a thorough review of permit records and has determined that the permit was <br />not previously approved for on-site milling. Therefore, under TR-02 the Operator is actually requesting to <br />incorporate a new mill facility with underground disposal of mill tailings. Division records indicate that <br />portions of the mine workings are flooded and the disposed mill tailings may be in contact with ground <br />water. The Division believes that the incorporation of a mill facility with underground disposal of mill <br />tailings has significant potential for adverse impact to the hydrologic balance and represents a significant <br />change to the approved reclamation plan. Such modification must be submitted for review through the <br />Amendment process, as described under Rules 1.1(6) and 1.10, rather than the Technical Revision <br />process, as described under Rules 1.1(52) and 1.9. <br />Unfortunately, the Division appears to have missed this critical point in its original review of TR-02 and on <br />November 19, 2008, provided an adequacy letter. In that adequacy letter the Division informed the <br />Operator that the decision date for TR-02 had been extended to December 24, 2008, that the proposed <br />operation constituted a Designated Mining Operation (DMO) and that the plans did not demonstrate <br />compliance with the performance standards of the Act and Rules. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines