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Hohne Roberts & Owen LLP® <br />Attorneys at Law <br />Cheryl Linden, Esq. <br />July 22, 2010 <br />Page 3 <br />DRMS to act on the mine pool issue, DRMS had decided that it wanted an <br />extension only until July 16th, which would be four days after the Board <br />hearing. On June 28, 2010, Cotter submitted comments on a letter from <br />DRMS, dated June 15, 2010, regarding TR-12. In that letter, Cotter <br />incorporated the positions in the June 21, 2010 letter, including the one <br />regarding the inappropriate use of a technical revision to address the mine pool <br />issue, and incorporated the June 25, 2010 Rationale. It also provided an <br />extension to July 16th to act on the mine pool issue, consistent with your <br />request, in order to obtain approval of Corrective Action #1. <br />In the DRMS July 1, 2010 pleading, entitled "The Division of Reclamation <br />Mining and Safety's Response to Cotter Corporation's June 21, 2010 submittal <br />to the Division's Notice of a Reason to Believe a Violation Exists Letter <br />Concerning Cotter's Permit No. M-1977-300 Regarding the Schwartzwalder <br />Mine," DRMS stated that "whether the mine dewater is a technical revision or a <br />permit amendment is not ripe for resolution at this time." <br />On July 8, 2010, DRMS issued a partial approval of TR-12 "to proceed with <br />the re-initiation of pumping and treatment of Sump no. 1 water, including the <br />construction of appropriate treatment and support structures, incorporating also <br />the interim treatment measures approved under TR-13." It also stated that the <br />"re-initiation of mine dewatering and treatment remains in dispute and will be <br />brought before the Mined Land Reclamation Board at their monthly meeting on <br />July 12, 2010." <br />At this time, Cotter is awaiting a draft of an order from the Board, upon which <br />Cotter plans to comment. Cotter is reserving all of its appeal rights. <br />In light of this background, Cotter will agree to an extension until July 30th only <br />if DRMS agrees that such an extension would not be used by DRMS to assert <br />that Cotter has waived, or is acting inconsistent with, its position that mine pool <br />dewatering and mine pool treatment are not justified, and even if they were <br />justified, the applicable regulations do not allow such a significant action to be <br />accomplished through a technical revision. <br />#1484743 v1 den