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DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />Response to Reclamation Permit Application Consideration <br />DATE: August 27, 2010 <br />TO: David A. Bird, Environmental Protection Specialist <br />Bill Ritter, Jr. <br />Governor <br />Mike King <br />Executive Director <br />"21. <br />Dick Wolfe, P.E. <br />Director/State Engineer <br />CC: Division 1 Office, District 7 Water Commissioner <br />FROM: loana Comaniciu, P.E. <br />RE: Schawartzwalder Mine, File No. M-1977-300 <br />Operator: Amory Quinn-Cotter Corporation N.S.L.-719-254-7413 ext. 202 <br />Contact: John Hamrick-Cotter Corporation N.S.L -719-254-7413 ext. 202 <br />Section 25, Twp 2 South, Rng 71 West, 6th P.M., Jefferson County <br />CONDITIONS FOR APPROVAL <br />® The proposed amendment to the existing operation does not anticipate exposing groundwater. <br />Therefore, exposure of ground water must not occur during or after mining operations. The <br />Schwartswalder Mine is a reclaimed underground uranium mine that was operated from 1953 to 2000. <br />During operations, the Schwartzwalder Mine was kept dry by pumping water from the lower levels of the <br />mine to the surface where it was treated and discharged to the Ralston Creek. Mining operations have <br />ceased in 2000 and the operator is in the process of reclaiming the site. The dewatering pumps were <br />shut off in 2000, and the mine was allowed to flood. The water treatment process ceased on June 30, <br />2002. The purpose of this amendment is to incorporate modifications to the Environmental Protection <br />Plan ("EPP") to address the issues raised by Division Reclamation Mining and Safety ("Safety") in a <br />letter dated May 19, 2010. Specifically, DRMS is concerned about the possibility of the mine pool water <br />migrating downgradient along ground water conduits and discharging into Ralston Creek. Therefore the <br />revised EPP will address the concerns related to environmental impacts from radionuclides and other <br />contaminants in the alluvium and in the filling mine pool. The operator is required to reinitiate a water <br />treatment system to treat all water that reports to Sump No. 1, reinitiate mine dewatering and water <br />discharge sufficient to bring the mine water table to at least 500 feet, and ensure that all discharges from <br />water treatment systems are made in compliance with the Water Quality Control Act. According to the <br />information provided, on July 2, 2002, the operator installed a new ion exchange water treatment system <br />to capture and treat ground water in the alluvium and fill. <br />® Although the mine dewatering involves significant technical challenges, note that in case of dewatering <br />the mine site a dewatering system permit must be obtained on the condition that all groundwater <br />pumped "must be discharged to the nearest stream without consumptive use or evaporative losses". <br />This dewatering well/system permit cannot be issued unless that operator demonstrates that the <br />requirements of no consumptive use or evaporative losses of the ground water will be achieved. In <br />addition the applicant must provide evidence to the Division Engineer that the dewatering <br />system will not result in injury to other water rights. <br />COMMENTS: If stormwater runoff is intercepted by this operation and is not diverted or captured in priority, it <br />must be released to the stream system within 72 hours. This may require a discharge permit from CDPHE- <br />WQCD. Otherwise, the operator will need to make replacements for evaporation. The applicant may contact the <br />State Engineer's Office with any questions. <br />Office of the State Engini'1 AUG ?, <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 UG 2 ' 2010 <br />www.water.state.co.us G.vision a, c? is ori, <br />it ning and Safety <br />,7