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cotter <br />VIA EMAIL AND U.S. MAIL <br />October 25, 2011 <br />Tony Waldron and David Bird <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Schwartzwalder Mine, Permit No. M- 1977 -300 <br />Technical Revision 15. Bonding for Sump 10 <br />Dear Mr. Waldron and Mr. Bird: <br />In June 201. concerns about potential evaporative losses from the incidental pond fonned by groundwater <br />daylighting in the excavated portion of the former emergency overflow retention pond led to a decision to <br />backfill the pond with available clean fill. On June 18, 2011, a 48 -inch corrugated HDPE casing pipe. left <br />over from 2010 sump construction activities, was placed at the eastern end of the pond during backfilling <br />in order to permit continued monitoring of groundwater levels and water quality in this area of the site. <br />Initial uranium screening analysis results from this location indicated levels that were unexpectedly high <br />relative to other groundwater monitoring locations. As a result. a spare pump was set in the well and <br />extra piping available onsite was placed above ground to temporarily enable pumping from this location <br />to the water treatment plant. While not originally intended for groundwater collection, this monitoring <br />well has since become an important groundwater pumping location and as such, the operator intends to <br />convert this well into an official, permanently winterized sump (Sump 10) under TR -15. A French drain <br />system for this collection location was not constructed. <br />Third -party contractors have estimated costs for the construction work necessary to convert this well into <br />a permanent collection location, Sump 10. Estimated costs for this work are as follows: <br />• Bury 2 -inch HDPE pipeline at 4 -foot depth, install concrete ring around riser: <br />• Install permanent, buried electrical power & run permissive pump controller: <br />• Install modified pitless adapter and pump mounting systems: <br />Bonding in the amount of 520.583 for this work will be posted with the Division of Reclamation. Mining <br />& Safety, upon approval. prior to construction. If you have any questions, please contact me at 719 -275- <br />7413 (ext. 202). <br />Sincerely, <br />S <br />ohn S. Hamrick <br />Vice President, Mill Operations <br />Telephone (719) 275 -7413 <br />Canon City Mill, P.O. Box 1750, Canon City, CO 81215 -1750 USA Fax (719) 275 -1669 <br />Cotter Corporation <br />Total <br />4 -1q 77 -3a v <br />$15.000 <br />4.283 <br />1.300 <br />$20.583 <br />