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Deficiency Issues for a NOI <br />Silver Wing Mine, NOI P- 2011 -027 <br />sampling plan should include a map, showing specific sample locations, and specify a list <br />of parameters and detection limits for Division review. Subsequent to the <br />establishment of baseline conditions, the Division will require the Applicant to submit a <br />monitoring plan sufficient to verify compliance with Rules 3.1.6 and 3.1.7. <br />NOTE: If the samples show that the mine discharge meets receiving stream standards <br />and if the Applicant can demonstrate to the Division's satisfaction that the proposed <br />activities will not adversely affect the water quality, the Division would consider <br />accepting the NOI. However, if the samples show that the mine discharge does not <br />meet the receiving stream standards, then it is possible that by re- entering the mine, <br />and disturbing the existing waste rock stockpile, the Applicant may incur perpetual <br />water treatment liability. <br />7. The application did not include a financial warranty. Please submit a financial warranty <br />addressing the replacement of the existing portal closure, stabilization of affected lands <br />and the requirements of Rule 4.2.1(4). Pursuant to Rule 4.2.1(4), the application <br />materials and financial warranty shall address all measures taken to assure the <br />protection of water resources, including costs to cover necessary water quality <br />protection, treatment and monitoring as required by the Act and Rules. Please ensure <br />that the application and financial warranty addresses the requirements of Rule 4.2.1(4). <br />8. On August 29, 2011, the Division received a correspondence from Colorado Goldfields <br />Inc. (CGI), dated August 29, 2011, in which CGI characterized the NOI as a procedural <br />courtesy and not required under the Act and Rules. As a point of clarification, the <br />Division disagrees. Failure to secure the Division's acceptance of the NOI and <br />appropriate financial warranty prior to implementing the plans proposed in the NOI may <br />result in enforcement action. <br />Subsequent to review of the Applicant's response to these deficiency issues the Division may <br />identify additional deficiency issues. As noted above, the Applicant has 60 days, until <br />November 21, 2011, to address all deficiency issues to the Division's satisfaction. <br />Sincerely, <br />A/ <br />Wallace H. Erickson <br />Environmental Protection Specialist <br />ec: Stephen C. Fearn, Chief Operating Officer, Colorado Goldfields <br />David Bird, DRMS <br />Steve Shuey, DRMS GJFO <br />4 <br />