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COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT <br />DIVISION OF ADMINISTRATION <br />WATER QUALITY CONTROL DIVISION <br />AMENDMENT NUMBER THREE <br />NOTICE OF VIOLATION / CEASE AND DESIST ORDER NUMBER: 10-100601-1 <br />IN THE MATTER OF: COTTER CORPORATION <br />SCHWARTZWALDER MINE <br />JEFFERSON COUNTY, COLORADO <br />Pursuant to the authority vested in the Colorado Department of Public Health and Environment's (the <br />"Department") Division of Administration by §§25-1-109 and 25-8-302, C.R.S., which authority has been <br />delegated to the Department's Water Quality Control Division (the "Division"), and pursuant to §§25-8-602 <br />and 25-8-605, C.R.S., the Division hereby issues the following Amendment Number Three to Notice of <br />Violation / Cease and Desist Order, Number: 10-100601-1 (the "Order"). <br />GENERAL FINDINGS <br />1. On June 1, 2010, the Division issued the Order to Cotter Corporation ("Cotter") citing violations of the <br />Colorado Water Quality Control Act (the "Act") for the discharge of uranium and other mine-related <br />pollutants to ground water and surface water from Cotter's Schwartzwalder Mine (the "Facility"). The <br />Order included a number of corrective actions that Cotter was required to implement at the Facility. A <br />copy of the Order, including its Amendments Numbers One and Two, is attached hereto as Exhibit A and <br />is incorporated herein by reference. <br />2. Cotter has completed the majority of the corrective actions required by the Order. However, ongoing <br />discharges of uranium and other mine-related pollutants to ground water and surface water from the <br />Facility continue. <br />3. Pursuant to paragraph 26 of the Order, Cotter is required to perform monthly water quality monitoring of <br />Ralston Creek, at a point upstream of the Facility and at the Facility's lowermost property boundary. <br />4. Analytical results of the samples collected by Cotter to-date establish the following concentrations of total <br />uranium in Ralston Creek: <br />Cotter Corporation - Schwartzwalder Mine <br />Amendment Number Three <br />Notice of Violation / Cease and Desist Order, Number: 10-100601-1 <br />Page 1 of 5 <br />