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Mr. Michael Cunningham - February 15, 2011 <br />Page Three <br />the financial warranty that was filed on or about August 2, 2010. AGC will maintain <br />direct contact with the DRMS bonding specialist (Ms. Johanna Cramer) as <br />necessary, and we anticipate that this issue (while not completed prior to the February <br />15, 2011 corrective action deadline) will be resolved in the very near future and <br />presumably prior to February 28, 2011. <br />3) Problem: The permit boundary was inadequately marked. <br />Corrective Action: Install sturdy markers at each change in boundary direction. <br />AGC RESPONSE. Prior lath staking has presumably been subject to disturbance <br />and/or loss during prior (pre-AGC) operations, or, to the extent such staking may have <br />remained present when AGC assumed permittee/operator status, it did not survive the <br />September 2010 Four Mile Canyon Fire. AGC will commit to having the permit boundary <br />adequately staked by a Colorado Registered Land Surveyor utilizing steel "T" posts or <br />an equivalent durable staking material. Due to the irregular shape of the permit area, <br />stake spacing will define all significant directional changes and where irregular <br />alignments are present between significant changes in direction the staking will occur at <br />nominal 150-ft. intervals. Again, due to seasonal conditions and depth of snow cover, <br />scheduling of field performance of the survey must be deferred to a later date in order to <br />ensure accuracy of the survey and integrity of staking. As such, AGC respectfully <br />requests an extension for completion of the field survey/installation portion of the <br />corrective action to July 31, 2011. <br />CASH AND WHO DO MINES (Permit No. M-1983-141) <br />(December 22, 2010 Inspection Report - Unresolved Problems) <br />The following two items were noted in the Inspection Report prepared by the Division as a result <br />of the December 22, 2010 site inspection. <br />1) Problem (Hydrologic Balance): An unpermitted dewatering well (CM-4) was <br />observed in the Cash Mine Area. Rule 3.1.6(1)(a) requires operations to be in <br />compliance with applicable Colorado water laws and regulations governing injury <br />to existing water rights. <br />Corrective Action: The operator shall obtain a well permit from the Office of the <br />State Engineer or seal the well and provide the Division with a Well Abandonment <br />Report by the corrective action date. <br />AGC RESPONSE. The Cash Mine Well (i.e., "CM-4") has been identified by AGC as <br />having been directly associated with and utilized in support of prior (pre-AGC) <br />operations' mining and milling activities. <br />On assuming ownership on June 15, 2019 AGC immediately commenced the <br />undertaking of a multi-faceted and relatively complex permitting effort to specifically <br />