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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 18, 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 />2010 Annual Hydrology Report — Preliminary Adequacy Review <br />Dear Mr. Kiger: <br />STATE OF COLORADO <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 2010 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. 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 H -1 — Mg and Ca, station E -1 — TSS and <br />TDS, station E -2 — TSS and TDS, station S -1 — Ca and Na, station NF -1 — TSS and Cl, station <br />NF -1 Se and Zn, station NF -3 — Zn and Hg, station HN -1 — TSS and Cl, station HN -1 Ca and <br />Na, station EC -14 — Na and SO4. <br />2. Station NF -1 and NF -3 are to be tested in August for additional parameters including chromium <br />III and IV. The data included in the 2010 AHR show results for chromium III and VI. Please <br />explain. <br />3. Stations NF -1 and NF -3 are scheduled to have lab analyses done in the 2 3 and 4 quarters <br />of each year. An analysis was done in the 2 quarter for NF -1 but not NF -3. Please explain. <br />4. In the water monitoring data, a trend was seen where many of the measured parameters were <br />significantly higher in 2010 than in previous years. This trend (abnormality) was not discussed <br />in the report but is seen in the surface water, ground water, up- gradient and down - gradient <br />water monitoring data. Seasonal variation was considered but ruled out when the 2010 data <br />was compared to the corresponding month in previous years. This is demonstrated in bullet `a' <br />Office of <br />Mined Land Reclamation <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />