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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) 866.3567 <br />FAX: (303) 832-8106 <br />August 13, 2010 <br />Cotter Corporation <br />Attn: Gus Gaviotis <br />t RADO <br />1 0 N O F <br />MATION <br />NING <br />SAFETY <br />Bill Riner, Jr. <br />Governor <br />Mike King <br />Executive Director <br />7800 E. Dorado Place, Suite 210 <br />Englewood, CO 80111 DiirreectorE er+eaa <br />RE: Schwartzwalder Mine; File No. M-1977-300; Corrective Actions 2 & 3 of the August 11, <br />2010 Mined Land Reclamation Board Order <br />Dear Mr. Gaviotis: <br />On August 11, 2010 the Mined Land Reclamation Board issued a Board Order (courtesy copy <br />enclosed) requiring Cotter Corporation to complete four corrective actions for the <br />Schwartzwalder Mine. Items 1 and 4 have been addressed and items 2 and 3 remain to be <br />completed. Item # 2 requires Cotter to reinitiate mine dewatering and water discharge <br />treatment by no later than August 31, 2010. Plans for addressing this corrective action must be <br />submitted as a technical revision to the permit by August 23, 2010. The revision must then be <br />reviewed and approved by the Division prior to implementation at the mine site. This review <br />will also include calculation of a new financial warranty (corrective action # 3) that must be <br />posted prior to implementation as well. <br />Please contact David Bird (303-866-3567 ext. 8108) or me (ext. 8150) if you have any questions. <br />Sincerely, <br />Anthony J. Waldron <br />Senior Environmental Protection Specialist <br />Cc: David Bird-DRMS <br />David Berry-DRMS <br />Loretta Pineda-DRMS <br />Cheryl Linden-AGO <br />John Hamrick-Cotter Corp. <br />Randy Whicker-Cotter Corp. <br />Charlotte L. Neitzel-Holm Roberts & Owen, LLP <br />Enclosure(s) <br />EXHIBIT I <br />Office of Office of <br />hlined Land Reclamation Denver • Grand )unction • Durango Active and inactive mines