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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 />15 August 2011 <br />Mined Land Reclamation <br />Mr. Randy Whicker <br />Health Physicist / RSO <br />Cotter Corporation <br />P.O. Box 1750 <br />Canon City, CO 81215 <br />Dear Mr. Whicker: <br />STATE OF COLORADO <br />f <br />c lb,ezjmi <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Schwartzwalder Mine, Permit No. M- 1977 -300, Suspension of Adequacy Review <br />Process for Environmental Protection Plan, AM -02 <br />On 12 August 2010, Cotter Corporation (Cotter) filed Amendment 2 (AMO2 / EPP) with the <br />Division of Reclamation, Mining & Safety (Division), which consisted of a Designated Mining <br />Operation Environmental Protection Plan (EPP) for the Schwartzwalder Mine. After the <br />Division's determination that the AMO2 / EPP represented a `complex' application pursuant to <br />§34- 32- 115(2) C.R.S. and Rule 1.1(10), plus the granting of extensions, the decision date for the <br />AMO2 / EPP was set at 12 August 2011. <br />Over the past several months, Cotter and the Division have been engaged in dialogue regarding <br />outstanding AMO2 / EPP adequacy issues. Some of these adequacy issues are related to the <br />Mined Land Reclamation Board's Order of 11 August 2010 requiring that Cotter reinitiate mine <br />dewatering and water discharge treatment sufficient to bring the mine water table to a level at <br />least 500 feet below the Steve Level, and sufficient to reestablish a hydrologic gradient away <br />from Ralston Creek. Cotter has sought judicial review of that order and the parties are awaiting <br />the District Court's judgment. <br />The Division believes that it is appropriate to delay further adequacy review regarding the AMO2 <br />/ EPP until the judicial review has been resolved in District Court. As per the Division's <br />conversations with Cotter's technical staff, the Division is hereby suspending the AMO2 / EPP <br />adequacy review process indefinitely until such time that the issues under litigation have been <br />resolved. Upon resumption of the adequacy review process, the Division will set a new decision <br />date for completion of the AM -02 / EPP. <br />Cotter has expressed concern that suspension of the AM -02 / EPP will endanger its right to <br />proceed with TR -18 (regarding the planned stream diversion structure) and/or to submit a <br />Technical Revision regarding in situ treatment at a future date. Cotter is hereby advised that <br />suspension of the AM -02 / EPP will in no way affect its rights to propose and submit <br />amendments and technical revisions under Hard Rock Rule 1.8 and 1.9. From this time forward, <br />Office of Office of <br />Denver • Grand Junction • Durango Actvve and l■active M\nes <br />