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COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT <br />DIVISION OF ADMINISTRATION <br />WATER QUALITY CONTROL DIVISION <br />NOTICE OF VIOLATION 1 CEASE AND DESIST ORDER NUMBER: I0-100601-1 <br />IN THE MATTER OF: COTTER CORPORATION <br />SCHWARTZWALDER MINE <br />JEFFERSON COUNTY, COLORADO <br />Pursuant to the authority vested in the Colorado Department of Public Health and Environment's (the <br />"Department") Division of Administration by §§25-1-109 and 25-8-302, C.R.S. (2009), which authority is <br />implemented through the Department's Water Quality Control Division (the "Division"), and pursuant to <br />§§ 5-8-602 and 25-8-605, C.R.S. (2009), the Division hereby makes the following Findings of Fact and issues <br />the following Notice of Violation 1 Cease aid Desist Order: <br />FINDINGS OF FACT AND CONCLUSIONS OF LAW' <br />1. At all times relevant to the violations cited herein, the Cotter Corporation C'Cotteewas a New Mexico <br />limited liability company in good standing and registered to conduct business in the State of Colorado. <br />2. Cotter is a "person" as defined under the Water Quality Control Act, §25-8-103(13), C.R.S. (2009), and its <br />implementing permit regulations, 5 CCR 1002-61, §61.2(73). <br />3. The Schwartzwalder mine is an underground uranium mine in Jefferson County near Golden, Colorado <br />(including, but not limited to, the mine and mine building and structures, referred to as the "Facility"). It <br />opened in about 1953 and was acquired by Cotter in 1966. <br />4. Cotter operated the mine. from 1966 until May 2000, when mining operations ceased. In 2000, pumps that <br />dewatered the mine were shut off and the mine was thus allowed to flood. Uranium and other metals have <br />leached from the rock in the mine and are contained within the solution that forms the mine pool. <br />5. Prior to the construction of mine facilities, Cotter placed waste rock from the mine as fill material in the <br />alluvium of Ralston Creek in order to create a pad for mine-related buildings (the "Pad). Four sump <br />pumps were placed in the Pad and the alluvium of Ralston Creek, and Ralston Creek was routed around <br />the Pad. Mine-related structures were then constructed on the Pad. <br />6. Cotter constructed a water treatment plant (`° WTP'j on site to treat water pumped from the mine and water <br />from the sumps and drains in the Pad and alluvium. <br />Cotter Corporation - Schwartzwalder. Mine <br />Notice of VioMoNCease and Desist Order <br />Page 1 of 7