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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 />May 19, 2010 <br /> <br />Mr. Randy Whicker <br />Health Physicist / RSO <br />Cotter Corporation ` <br />P.O. Box 1750 <br />Canon City, CO 81215 <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. PirSeda <br />Director <br /> <br />Re: Schwartzwalder Mine, Jefferson County, Permit No. M-1977-300, Designated Mining <br />Operation Environmental Protection Plan, TR-11, Adequacy Review # .? <br />Dear Mr. Whicker: <br />The Division of Reclamation, Mining and Safety (DRMS) has completed a second adequacy review of <br />Environmental Protection Plan (EPP) for Cotter Corporation's (Cotter) Schwartzwalder Mine in Jefferson <br />County. DRMS now concludes that the EPP as submitted does not provide adequate environmental <br />protections as required under Rules 3.1.6, 3.1.7, and 6.4.20, and the application is denied. The specific plan <br />and submittal inadequacies that support this denial are detailed below under the section labeled "Corrective <br />Actions - Permit Amendment". The public and agency comments received in response to the EPP <br />submittal are enclosed with this letter. The pending issues will be addressed through the following <br />combination of enforcement and permitting actions. <br />DRMS Enforcement Action <br />DRMS will pursue an enforcement action to address apparent mine-related impacts occurring to Ralston <br />Creek. The water quality sampling data included with the previous EPP submittal indicate that Cotter <br />Corporation is failing to minimize disturbance to the prevailing hydrologic balance of the affected land and <br />surrounding land and to the quality of water in surface and groundwater systems once mining ceased. <br />Ralston Creek is a drinking water supply source for several municipal water providers including Denver <br />Water and the City of Arvada. Although they are presently treating for the removal of uranium, the mine- <br />related impacts to these systems must not occur. <br />The levels of uranium in Ralston Creek are now consistently exceeding the receiving stream standards. The <br />currently available data indicate that two mine-related events appear to have led to significantly increased <br />uranium levels in the receiving stream. These events are the cessation of water treatment (both from the <br />mine and Sump Number One) and the cessation of water recirculation from Sump Number One. The <br />underground mine pool may also be a contributing factor. <br />Enforcement-related documents will be sent by separate correspondence within the next several days. <br />In the interim, the Division directs Cotter to initiate corrective actions as outlined below. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines