2009-07-24_GENERAL DOCUMENTS - M2009076 (3)

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operation will involve both excavating the rock from waste piles and removing minerals from the rock through further processing. Likewise, the location of the mill does not alter the conclusion that the proposed activities require a mining permit. As noted above, the Act defines mining operation to include "concentrating; milling; evaporation; and other processing" on affected lands. Both the operations cited above and currently active operations provide examples of situations where milling operations are subject to permitting requirements.4 Venture Resources proposes to conduct milling and concentrating activities, both of which are explicitly subject to the Act. The exemption in the statute for off-site operations applies to "smelting, refining, cleaning, and preparation ... and other off-site operations." The statute thus makes a clear distinction between the type of concentrating and milling activities proposed by Venture Resources as being subject to the Act and refining operations which may not be subject to the Act. Finally, CDPHE has informed the Division that it will not regulate either the removal of the waste rock piles or the mill itself. In the absence of DRMS control, CDPHE's Solid Waste Division will regulate the disposal of waste produced by the proposed milling process. CDPHE will not, however, exercise regulatory authority over the design of the mill itself or over the excavation of the existing waste rock piles. Both of these phases of the operation have the potential to create acid mine drainage or other substantial environmental harm. B. The Proposed Mill is a Captive Mill. Venture Resources also asserts that the proposed mill is a custom mill not within the regulatory jurisdiction of the Board or Division. Petition at 3. Under Division rules, the Board and Division do not exercise jurisdiction over "Custom Mills." The mill proposed by Venture Resources is clearly a captive mill under the regulations. The regulations define custom mill as "a mill that is not engaged in the processing of ore from any permitted mine that is owned or, ommon control with the milling facility or the entity operating the milling f The Division and the MLRB do, however, regulate facilities ref General speaking captive mills are defined in contrast to e N that captive mills process ore from mining operations con ?- 7 that runs the mill. Venture Resources states that the mill -? from other third party's mining operations; only our sok l? at 3. Thus if the Board concludes that the proposed re- mining operation requiring a permit, the mill is a capti, ??, to Division regulations. ` III. Conclusion. 4 For example, the Henderson Mine Permit No. includf the mine site. 4