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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 />L O RA D O <br />Phone: (303) 866-3567 <br />I S I O N O f <br />JREECLANLATION <br />FAX: (303) 832 -6106 <br />INI N G <br />L <br />February 15, 2011 <br />AFETY <br />John W. Hickenlooper <br />Corey Heaps <br />Governor <br />McClane Canyon Mining, LLC <br />Mike King <br />2352 N 7' Street, Unit C <br />Executive Director <br />Grand Junction, CO 81501 <br />Loretta E. Pineda <br />Director <br />Re: McClane Canyon Mine, Permit No, C- 1980 -004 <br />Permit Revision No. (PR -2), Preliminary Adequacy Review <br />Dear Mr. Heaps: <br />The Division of Reclamation, Mining and Safety (Division) has completed the initial adequacy review <br />for the McClane Canyon Mine Permit Revision No. 2 application submitted by McClane Canyon <br />Mining, LLC (MCM). The application has been reviewed and this letter presents our preliminary <br />findings as to the substantive adequacy of the application. The application is generally inadequate with <br />regard to the proposed new Coal Mine Waste Pile (CMWP) and new coal cleaning plant; some key <br />issues are listed here: <br />• The central portion of the proposed CMWP footprint is occupied by what appears to be a maiunade <br />fill, associated with a previous attempt to create an impoundment in the East Salt Creek drainage. <br />0 The CMWP geotechnical report provided in Appendix R is missing key details, and no new <br />boreholes were drilled to evaluate the subsurface characteristics beneath the proposed pile. <br />• The site of the proposed Air Jig Plant will require filling in a portion of McClane Wash and <br />confining the natural drainage to a culvert. Details regarding these proposed alterations are <br />minimal for both the mining and operations plan and for the reclamation plan. <br />The Division has the following questions and comments which are organized by the pertinent sections <br />of the Rules and Regulations of the Colorado Mined Land Reclamation Board. <br />Rule 2.03 Legal, Financial, Compliance and Related Information <br />1. There is no updated Section 2.03 included in the revised application materials. Ownership and <br />control information is contained in Appendix A and compliance information is in Appendix B <br />of the existing permit document. Since the entire Section 2.0 has been revised it should contain <br />at least a brief Section 2.03 referencing Appendices A and B where the bulk of the <br />identification of interests and compliance information is found. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />