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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 />February 2, 2012 <br />Mr. Don Loloff <br />Loloff Construction, Inc. <br />P.O. Box 518 <br />Kersey, CO 80644 <br />Re: Loloff Construction, Inc., Loloff Mine, Permit No. M- 1985 -112 <br />Exposed Groundwater Compliance Process <br />Dear Mr. Loloff: <br />STATE OF COLORADO <br />Loretta Pineda <br />Director <br />On April 30, 2010, the Division of Reclamation, Mining and Safety (Division) sent a letter to the <br />mine site indicated above discussing the Division's requirement for the protection of water <br />resources at mining sites with exposed groundwater. <br />The letter required all sand and gravel mining Operators /Permittee to comply with the <br />requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the <br />protection of water resources. The letter required Operators /Permittee to provide information <br />to the Division demonstrating they could replace long -term injurious stream depletions that <br />result from mining related exposure of groundwater. The letter indentified four (4) approaches <br />to satisfy this requirement. This information was due by April 30, 2011. The Permittee failed to <br />comply with the requirements of the letter by the due date. Mr. Loloff contacted the Division <br />in December 2011 to acknowledge the error and agreed to work with the Division to resolve <br />the issue. Since Mr. Loloff contacted the Division and acknowledged the error, the Division will <br />not issue a possible violation for failure to comply with the letter and the requirements of CRS <br />34- 32.5- 116(4)(h), Rule 3.1.6(1)(a) and 6.4.5(2)(c) at this time. To avoid a future possible <br />violation, the Permittee must continue to work with the Division and account for the Tong -term <br />groundwater exposure at the site. <br />The following procedure must be followed by the Permittee to avoid a future possible violation: <br />1. Submit a technical revision within 60 days (April 2, 2012) from the date of this letter to <br />provide an alternate reclamation plan for installation of a slurry wall (Option 3 in the <br />March 30, 2010 letter). The technical revision must be filed in accordance with Rule 1.9 <br />and included the required $216.00 fee. <br />As discussed during the January 20, 2012 inspection and subsequent conversations, the Division <br />and Permittee agree the most feasible and cost effective alternate reclamation plan at the site is a <br />slurry wall. The technical revision must state the Permittee is providing an alternate reclamation <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Office of <br />k � , 17( I_• Active and Inactive Mines <br />