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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 86&3567 <br />FAX; (303) 832-5106 <br />May 21, 2010 <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAF E`I'Y <br />Bill Ritter, Jr. <br />governor <br />Mr. Randy Whicker James B. Martin <br />Health Physicist / RSO Executive Director <br />Colter Corporation Loretta E. Pineda <br />P.O. Box 1750 Dhectur <br />Canon City, CO 81215 <br />RE: Schwartzwolder Mine; DRMS Permit No. M-1977-300; Notice of a Reason to Believe a Violation <br />Exists at the Schwartzwalder Mine <br />Dear Mr. Whicker: <br />On May 18, 2010 the Division of Reclamation, Mining and Safety (DRMS) conducted an inspection of the <br />Schwartzlvalder Mine located approximately 7 miles Northwest of Golden, Colorado. As a result of that <br />inspection and in conjunction with review of the April 19, 2010 Environmental Protection. Plan response, DRMS <br />found the following: <br />The Operator has failed to adequately minimize disturbances to the prevailing hydrologic balance of the affected <br />land and surrounding area and to the quality of surface and ground water systems during mining and/or <br />reclamation. Elevated levels of uranium are present in the mine pool, the alluvial area. adjacent to Ralston Creek, <br />and in Ralston Creek. <br />Based on the findings of the inspection we believe that this is a violation of. <br />• § 34-32-116(7Xc), C.R.S. for failure to handle acid-forming or toxic-forming material in a manner <br />that will protect the drainage system from pollution. <br />• § 34-32-I 16(7)(8), C.R.S. for failure to minimize disturbances to the prevailing hydrologic balance <br />of the affected land and of the surrounding area and to the quality of water in the surface and <br />ground water systems after the mining operation and during reclamation. <br />• § 34-32-116(7)(h), C.R.S. for failure to protect areas outside of the affected area from slides or <br />damage occurring daring the mining operation and reclamation. <br />• § 3432- t 16(7)(i), C.R.S. for failure to protect all surface areas of the affected land so as to <br />effectively control erosion and attendant water pollution. <br />In addition, it is a violation of the Minerals Rules and Regulations of the Colorado Mined Land Reclamation <br />Board for Hard Rock, Metal and Designated Mining Operations for <br />• Failure to comply with Rules 3.1.6-General Requirements for Water and 3.1.7-Specific <br />Requirements for Ground Water. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction o Durango Active and Inactive Mines