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d62, aj w <br />®IC4- <br />carter <br />Via Email and U.S. Mail <br />September 24, 2010 <br />Mr. Anthony Waldron <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />t? <br />Re: Schwartzwalder Mine, Permit No. M-1977-300 <br />Xiotification of Pipe Discovery <br />Dear Mr. Waldron: <br />,,= INJ ED <br />P<07 012010 <br />Dk* (n of Reiaworation, <br />?V Mkmg r- d Sefty <br />This responds to the Division of Reclamation, Mining and Safety's ("DRMS") letter dated <br />September 17, 2010 ("Letter") requesting Cotter Corporation (N.S.L.) ("Cotter") to provide <br />certain information to DRMS regarding the discovery of a pipe on the Schwartzwalder Mine <br />site ("Site"). <br />Cotter wishes to set forth the following clarifications to certain statements in the Letter: (1) the <br />pipe in question was discovered via visual inspection by personnel working at the site, not <br />through excavation; (2) Cotter stated in its September 3, 2010 letter to DRMS that the uranium <br />concentrations in the pipe liquid were "generally similar" to uranium concentrations found in <br />the mine pool; and (3) DRMS staff did not request all of the bulleted "additional information" <br />during the September 9, 2010 inspection, as described in the Letter. <br />The pipe was discovered by the site environmental technician at approximately 7:30 a.m. on <br />July 20, 2010. The pipe is nominal two inches in diameter, possibly constructed of high- <br />density polyethylene plastic. The flow rate measured after the time of discovery was 4 liters in <br />40 seconds, or 1.59 gallons per minute. The elevation of the mine pool was 6,585.9 feet above <br />mean sea level (NAD 27) at 12:00 p.m. on July 20, 2010, as measured by installed <br />instrumentation. The liquid was sampled and the results from the vendor laboratory are in <br />Attachment 1 _ <br />Cotter arranged for COLOG, a borehole geophysics company, to be at the Site on <br />September 13, 2010 to investigate the interior of the pipe. COLOG determined that the pipe <br />was too small for insertion of anything other than a small-diameter video camera. COLOG <br />was able to advance the small-diameter camera about 40 feet into the pipe before encountering <br />a bend which prevented further progress. COLOG has not yet provided the video record. <br />Cotter will make it available to DRMS once received. COLOG will return to the Site, possibly <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