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<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 />October 21, 2010 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br /> Bill Ritter, Jr. <br />Glenn Williams Governor <br />Cotter Corporation James B. Martin <br /> Executive Director <br />O. Box 700 <br />P <br />. Loretta E. Pineda <br />Nucla, CO 81424 Director <br />RE: JD-8 Mine, Permit No. M-1984-014, Notice of Required Environmental Protection Plan (EPP). <br />Dear Mr. Williams, <br />On September 23, 2010 the Division of Reclamation, Mining, and Safety (the Division) inspected the JD-8 <br />Mine as part of its normal monitoring program. The JD-8 Mine is a 112-d, Designated Mining Operation <br />(DMO) permit. The Division notes the existence of a stockpile of 300 to 500 tons of uranium ore that <br />has been on site since at least April 2, 2008. At that time, the Division requested that the stockpile be <br />enclosed by berms to prevent stormwater interaction and to contain ore sedimentation. The <br />September 2010 inspection notes that the berms were not placed or have been removed. Site <br />conditions note the interaction with stormwater and sedimentation fans from or near the stockpile that <br />suggest ore fines are potentially leaving the immediate area. <br />As an interim measure, the Division is requiring Cotter to immediately install berms completely around <br />the stockpile to prevent further excursions of sedimentation and interaction with stormwater. This task <br />must be completed within 30 days of the date of this letter, November 17, 2010. <br />The uranium ore stockpile in its current location is considered a hazardous condition that has the <br />potential for adverse impacts to persons, property, and / or the environment. The uranium material <br />itself is classified as a toxic material and subject to the requirements of DMO per C.R.S. 34-32-103(3.5) <br />(III). The lack of environmental controls of the stockpile area allows a potential for uranium to affect off <br />site areas. The Division is requiring Cotter to eliminate the stockpile to reduce further potential impacts. <br />Cotter must remove the stockpile within 90 days of the date of this letter, January 16, 2011, by either <br />putting the material back in the mine at a location not susceptible to groundwater interaction or <br />shipping off-site to a mill or other approved location. <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango <br />STATE C`7 COLORADO <br />Office of <br />Active and Inactive Mines