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cotter <br />09/17/2010 <br />Jim Dupler <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Re: 112 Hard Rock/Metal Annual Report and Fees <br />Permit M-1977-300 <br />Dear Mr. Dupler <br />Pursuant to Section 34-32-116 of the Colorado Mined Land Reclamation Act, C.R.S. 1973, as amended, <br />enclosed is the 112 Annual Report and Fee for the Cotter Corporation (N.S.L.) Schwartzwalder Mine, <br />Reclamation Permit M-1977-300. This report provides a summary of the Cotter Corporation's activities <br />at the Seltwartzwalder Mine Site during the reporting period (since September 28, 2009). All mining <br />operations at the site were discontinued in 2003. <br />The Schwartzwalder Mine is located in Jefferson County. The mine has a total pennitted affected acreage <br />of 51.89 acres in Section 25, T25, R71 W, 6PM and Section 8, TBS R70W, 6PM. This acreage is <br />unchan_ed from the previous year (see Figure 1). <br />Changes to Affected Area: <br />There were no significant changes to the affected area for this reporting period. A new map is not <br />included with this report as the version submitted last year accurately depicts affected area status (the <br />exact acreage listed on the figure has been updated according to current DRMS records). <br />Reclamation Related Activities During Report Period: <br />• Repair / improvement of security gates and mitigation of minor erosion at portal openings. <br />• Installation of new water treatment facilities to remove uranium from groundwater within the <br />alluvial fill (through technical revisions 12 and 13 to the permit). Extraction of alluvial <br />groundwater is currently occurring at Sump 1, Sump 4, and Monitoring Well (MW) 9. <br />• Additional cleanup and removal from the site of non-functional and non-contaminated equipment <br />and debris. <br />Revieuy vfReclanuation Bond Adequacy: <br />Pursuant to Colorado Mineral Rules and Regulations Rule 1, Section 1.15(l) (a), the level of financial <br />warranty for the Schwaruwalder Mine has been increased from $109,082.52 to $1,099,301.50. At this <br />time, the current bond amount is believed sufficient cover DRMS related reclamation costs. <br />A check in the amount $1,150.00 is attached to this report as payment for the annual fee for Reclamation <br />Permit No. M-1977-300. <br />Cotter Corporation Telephone (719) 275-7413 <br />Canon City Mill, P.O. Box 1750, Canon City, CO 81215-1750 USA Fax (719) 275-1669