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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 />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />June 6, 2011 Govemor <br />Mike King <br />Executive Director <br />Karlyn Adams, Water Resource Engineer <br />Loretta E. Pineda <br />Division of Water Resources Director <br />1313 Sherman Street, Suite 818 <br />Denver, CO 80203 <br />Re: Fruita Loadout (Permit No. C -2010 -088) <br />New Permit Application <br />Dear Ms. Adams: <br />In October 2010, the Division of Water Resources submitted comments to the Division. of <br />Reclamation, Mining and Safety (DRMS) regarding the proposed Fruita Loadout project to be <br />operated by CAM Colorado, LLC (CAM). DRMS forwarded your comment letter to CAM as an <br />attachment to our preliminary adequacy review dated November 30, 2010 and asked that they <br />provide a substantive response to the concerns raised in your letter. CAM has responded and has <br />submitted the following response listed below. I have provided our original comment to CAM <br />(Item 7 of our November 30, 2010 letter) along with their response paraphrased below in bolded <br />text. <br />7. Please refer to the enclosed comment letter from the Division of Water Resources, Office <br />of the State Engineer (SEO) dated October 28, 2010. The SEO has identified several <br />concerns with the proposed project as summarized below. <br />• If the area becomes overappropriated, the storage of surface water in sediment <br />ponds would be subject to administration. The SEO recommends that a water court <br />decree be obtained to affirm the priority of the storage of storm water. <br />• If any of the sediment ponds expose groundwater, the pond must be backfilled <br />immediately until a well permit issued pursuant to CRS 37 -90- 137(2), allowing the <br />exposure of groundwater in a pit is obtained from the State Engineer. <br />• The SEO has no records of permits for the existing monitoring wells on site. As <br />stated in the SEO's letter, if these wells were completed without a valid monitoring <br />hole notice or well permit the applicant needs to take immediate action to plug or <br />pen the wells. <br />Office of <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />