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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 />Interoffice Memo <br />To: Jim Stark <br />From: Kent Gorham <br />CC: Sandy Brown <br />Date: November 9, 2010 <br />RE: Phase II Sediment Demonstration, SL-04, Colowyo Mine, #C-1981-019 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />- SAFETY <br />I have completed my review of the materials submitted June 1, 2010 for the Phase II <br />bond release application (SL-04) for the Colowyo Mine, permit #C-81-019. My <br />comments are specific to the sediment demonstration made by Colowyo (applicant) as <br />required by Rule 3.03.1(3)(b). <br />General Comments <br />Two previous Phase II bond release applications have been approved at this site, as <br />documented in the Division's written findings on page 4 for Surety Release No. 3 (SL- <br />03). Surety Release No. 1 (SL-01) approved a Phase 1/II bond release for 176.4 acres <br />in September 1987. Surety Release No. 3 approved a Phase II bond release for 50 <br />acres (Phase I bond released in September 1987) and for 712.1 acres (Phase 1 bond <br />released in May 1998) for a total of 762.1 acres that have achieved a Phase I and <br />Phase II bond release at this site. The table below better details the bond release <br />history to-date. <br />Permitting action <br />approved Phase I acres Phase II acres <br />September 1987 SL-01 226.4 176.4 <br />Ma 1998 SL-02 712.1 <br />August 2001 SL-03 762.1 <br /> <br />Total 938.5 938.5 <br />Rule 3.03.1(3)(b), stated below in italics, limits the amount of bond liability that can be <br />released until the operator demonstrates that suspended sediment from the reclaimed <br />area is equal to or less than sediment generated from pre-mining area as determined by <br />baseline data or as determined on adjacent non-mined areas. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines