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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />REPLY OF COTTER CORPORATION (N.S.L.) TO THE DIVISION OF <br />RECLAMATION, MINING AND SAFETY'S RESPONSE TO COTTER'S ANSWER TO <br />THE DIVISION'S. SEPTEMBER 16, 2010 NOTICE OF REASON TO BELIEVE A <br />VIOLATION EXISTS REGARDING THE BOARD'S AUGUST 11, 2010 ORDER WITH <br />RESPECT TO THE SCHWARTZWALDER MINE <br />The Division of Reclamation, Mining and Safety ("Division") inappropriately maligns <br />the remedial activities of Cotter Corporation (N.S.L.) ("Cotter") as those taken to "allegedly <br />improve water quality," as those supported by "theories of what it thinks is occurring at the site," <br />and as those involving "creat[ion] of yet another sump and a French drain from which to capture <br />more groundwater." It was the Division, however, which ordered the capture and treatment <br />system to treat alluvial groundwater reporting in Sump No. 1 through Corrective Action No. 1. <br />Cotter's good faith scientific investigations and strategies for improving water quality in Ralston <br />Creek by expanding the capture system should not be disparaged. Cotter has, in fact, closely <br />coordinated with the Colorado Water Quality Control Division regarding its remediation <br />strategy, as reflected in part in the attached October 20, 2010 letter from the Colorado Water <br />Quality Control Division. See Exhibit A. It has also explained its rationale and sought approval <br />from the Division for its remedial activities, and the Division approved them. Its investigation <br />and remedial activities have improved water quality in Ralston Creek, and will continue to do so. <br />It is also continuing to conduct investigations, such as using a particle tracking model to confirm <br />that the sumps are being highly effective in removing uranium from the alluvial fill. <br />The Division claims that "ironically, despite these actions, Cotter concedes that it <br />continues to fail to meet stream standards for uranium." Several actions, however, are in the <br />process of being implemented. Sump 5 became operational on November 11, 2010, and