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23. Cotter denies the allegations in paragraph 23. <br />Affirmative Defense <br />The WQCD has failed to state a claim upon which relief can be granted. <br />Second Affirmative Defense <br />The alleged violations, including that the placement of waste rock on the Pad has resulted in the <br />discharge of uranium and other mine related pollutants to the alluvial water and Ralston Creek, <br />are barred by the applicable statute of limitations. <br />Third Affirmative Defense <br />The alleged violations are barred by laches. <br />Other Defenses <br />This answer is being filed based on Cotter's current knowledge of facts after reasonable inquiry. <br />Cotter reserves the right to amend this answer to assert any additional defenses, based on new <br />information or subsequent investigations. <br />Corrective Action <br />Cotter responds to the "Required Corrective Action" section of the Cease and Desist Order as <br />follows. Cotter has already begun monthly water quality sampling, and will report the results of <br />monthly monitoring to the WQCD within seven (7) days of receipt of the results, consistent with <br />paragraph 26. Cotter submitted a detailed written plan and expedited time schedule for the <br />implementation of interim measures, consistent with paragraph 27, on June 26, 2010. The <br />interim measures include temporary active removal of uranium from all water reporting to Sump <br />Number One and discharge of the treated water to Ralston Creek at a temporary nearby <br />discharge location, as set forth in detail in the submission. Cotter is in the process of obtaining <br />permits and undertaking the steps to reinitiate a water system to treat all water that reports to <br />Sump Number One by July 31, 2010, consistent with paragraph 28.a. Cotter objects to <br />paragraph 28.b (and paragraph 28.c to the extent it relates to paragraph 28.b) for the reasons set <br />forth in the Rationale for Not Conducting Mine Dewatering and Mine Water Treatment at the <br />Schwartzwalder Mine, by Susan A. Wyman, P.E., P.G., of Whetstone Associates, submitted to <br />the WQCD on June 25, 2010, and incorporated herein by reference. By August 31, 2010, Cotter <br />will submit a detailed written description and time schedule outlining Cotter's plans for long <br />term management of sources consistent with paragraph 29. <br />WHEREFORE, Cotter respectfully requests that no violations be found. <br />4 <br />#1478735 v2 den