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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 />November 3, 2011 <br />James A. Kiger <br />Oxbow Mining, LLC. <br />P.O. Box 535 <br />3737 Highway 133 <br />Somerset, CO 81434 <br />RE: Elk Creek Mine (Permit No. C- 1981 -022) <br />2009 Annual Hydrology Report <br />Preliminary Adequacy Review <br />Dear Mr. Kiger: <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <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 />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining and Safety (Division) has finished its preliminary <br />adequacy review of the 2009 Annual Hydrology Report. The Division is requesting in this letter that <br />Oxbow provide additional monitoring results, therefore no determination of the effects of mining on <br />the hydrologic regime is being made by the division at this time. The Division has the following <br />questions and comments: <br />1. Third quarter laboratory analysis were not included for the following stream monitoring <br />stations: C -1, HN -1, S -1 and B -1. Please submit the third quarter laboratory analysis for these <br />four sites. <br />2. The note on permit application page 2.04 -41 states that several chemical parameters in addition <br />to ones on the standard list are to be tested at the North Fork surface water sampling sites <br />during August. However, the data sheets for NF1 and Nf -3in the 2009 AHR do not show the <br />results for some of these additional constituents, including hardness, ammonia, cyanide, silver, <br />boron, chromium III, chromium IV and nickel. Please explain. <br />3. The water transferred from the B -seam to the Somerset mine workings (D -seam) is to be <br />monitored for total annual volume of transferred water per year (Exhibit 2.05 -E7 page 2). This <br />data was not included in the report. Please submit this data. <br />4. White font is used for chart symbols; however, on white paper, this makes the legend difficult <br />to interpret when it is used for more than one symbol on a single chart. Please change the font <br />color of the symbols in the following charts: station E -1 — TDS & TSS, station E -2 — TDS & <br />TSS, station S -1 - Ca & Na and station H -1 — Ca & Mg. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />