2011-08-26_REVISION - M1981185 (3)

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Fifth Adequacy Letter, Amended CN -01 May Day Idaho Mine Complex, M- 1981 -185 8. The Water Quality Control Division (WQCD) of Colorado Department of Public Health and Environment has informally indicated a Colorado Discharge Permit System (CDPS) permit would be required for the discharge associated with the Idaho No. 1 Adit. The Division informed the Applicant of the Division's policy to not approve any application which indicates a perpetual water treatment liability. The Division requested the Applicant to address the potential for perpetual water treatment liability. Pursuant to Rule 3.1.6(1)(b), the Division required the Applicant to obtain a CDPS permit or a letter from WQCD stating a CDPS permit is not required. The application indicated a CDPS permit would not be necessary and did not provide a letter from WQCD verifying a CDPS permit is not required. 9. Exhibit G, Water Resources, and Exhibit U, Environmental Protection Plan, was reviewed by staff member David Bird. Mr. Bird has generated a technical review memorandum in which he identifies outstanding adequacy issues for Exhibit G and Exhibit U. Copy of Mr. Bird's technical review memorandum, dated August 23, 2011, is attached. Please address the adequacy issues identified by Mr. Bird. 10. Figure C -7, Man -Made Structures, identifies at least nine permanent man -made structures located within 200 feet of the permit boundary, as follows: County Road 124, a bridge at La Plata River, an overhead power line owned by La Plata Electric Association, an underground telephone line owned by Qwest Communications, two fence lines (Vaught and Olsen), three water wells (O'Donnell, Fagerlin and Linden), and pre- existing access roads. Pursuant to Rule 6.4.20, the Applicant shall provide information sufficient to demonstrate that the stability of any structures located within 200 feet of the permit boundary will not be adversely affected. If the Office determines that such information is inadequate to demonstrate that the operation will not adversely affect the stability of any significant, valuable and permanent man -made structure, the Applicant shall either: (a) Provide a notarized agreement between the Applicant and the person(s) having an interest in the structure, that the Applicant is to provide compensation for any damage to the structure; or (b) Where such an agreement cannot be reached, the Applicant shall provide an appropriate engineering evaluation that demonstrates that such structure shall not be damaged by activities occurring at the mining operation; or (c) When such structure is a utility, the Applicant may supply a notarized letter, on utility letterhead, from the owner(s) of the utility that the mining and reclamation activities, as proposed, will have "no negative effect" on their utility. 7