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7. In order to operate the mine in compliance with state and federal law, Cotter obtained, inter alia, Colorado <br />Discharge Permit System ("CDPS") Permit # CO-0001244 (the "Permit"). The current version of the <br />Permit authorizes Cotter to discharge certain levels and/or amounts of uranium and other mine-related <br />pollutants from the WTP to Ralston Creek via outfall 001, defined in the Permit as the discharge pipe <br />leading from the treated water retention pond to Ralston Creek. <br />8. In June of 2002, Cotter ceased pumping water from the sumps to the WTP, and the WTP was shut down. <br />9. In 2002, shortly after sump pumping to the WTP ceased, the levels of uranium and other mine-related <br />pollutants increased in Ralston Creek downstream of the Facility. <br />10. From 2002 to 2008, Cotter recirculated water from a downgradient sump in the Pad to an upgradient <br />sump. Cotter ceased sump pump recirculation in April of 2008. <br />11. In 2008, shortly after Cotter ceased the sump recirculation, the levels of uranium and other mine-related <br />pollutants significantly increased in Ralston Creek downstream of the Facility. <br />12. "Discharge of pollutants" is defined as "the introduction or addition of a pollutant into state waters." §25- <br />8-103(3), C.R.S. (2009). <br />13. Ralston Creek is "state waters" as defined by §25-8-103(19), C.R.S. (2009) and its implementing permit <br />regulations, 5 CCR 1002-61, §61.2 (102). <br />14. Alluvial water near or beneath the Facility is hydrologically connected to Ralston Creek and is "state <br />waters" as defined by §25-8-103(19), C.R.S. (2009), and its implementing permit regulations, 5 CCR <br />1002-61, §61.2 (102). <br />15. Cotter, as a result of the disturbance of the hydrologic condition of the mine, as an effect of allowing the <br />mine to flood, is discharging uranium and other mine-related pollutants to ground water and Ralston <br />Creek. <br />16. Cotter, as a result of its placement of waste rock from the mine in the alluvium of Ralston Creek to create <br />the Pad, is discharging uranium and other mine-related pollutants to the alluvial water and Ralston Creek. <br />17. Uranium and other mine-related pollutants are "pollutants" as defined by §25-8-103(15), C.R.S. (2009), <br />and its implementing permit regulation, 5 CCR 1002-61, §61.2 (76). <br />18. The mine is a`point source" as defined by §25-8-103(14), C.R.S. (2009), and its implementing permit <br />regulation, 5 CCR 1002-61, §61.2 (75). <br />19. The Pad is a "point source" as defined by §25-8-103(14), C.R.S. (2009), and its implementing permit <br />regulation, 5 CCR 1002-61, §61.2 (75). <br />20. Cotter does not have a permit authorizing the discharge of pollutants described in paragraphs 8-19 above, <br />and, specifically, the discharge described above is not authorized pursuant to the terms of the Permit. <br />Cotter Corporation - Schwartmalder Mine <br />Notice of Violation/Cease and Desist Order <br />Page 2 of 7