2013-01-22_REVISION - C1991078 (2)

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STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 C O L O RA D O D I V I S I O N o f Denver, Colorado 80203 RECLAMATION Phone: (303) 866 -3567 M IN I NIN G N FAX: (303) 832 -8106 SAFETY January 22, 2013 John W. Hickenlooper Governor Mr. Jim Stover J.E. Stover and Associates, Inc. Mike King 2352 North 7th Street, Unit B. Executive Director Grand Junction, Colorado 81501 Loretta Pineda Director RE: Hamilton Mine; C- 1991 -078 Phase III Bond Release (SU), Adequacy Review No. 4 Dear Mr. Stover, The Division received your letter dated December 28, 2012 in response to the Division's third adequacy review letter dated December 14, 2012. There appears to be a discrepancy in your response letter and several other items are still outstanding from the Division's previous adequacy reviews. These issues are discussed below: 1.) The Division received a letter from you dated December 5, 2012 in regards to the status and abandonment of the monitoring wells used at the Hamilton Mine. The letter indicated alluvial well AW -5 was destroyed in a high run -off event and that a well permit was applied for alluvial well AW -6. However; enclosed with your December 28, 2012 letter, a well permit for well AW -5 and a transfer agreement between the landowner and the Operator for this well was submitted but not for well AW -6. Please explain this discrepancy and clarify the status of well AW -6. If well AW -6 still exists, it will need to be sealed in accordance with Rule 4.07, or a well permit must be obtained and the well transferred to the landowner in accordance with Rule 4.05.14. 2.) Documentation was submitted with your December 28, 2012 letter that well permits have been obtained for wells AW -5 and AW -7 as well as the required transfer agreement with the landowner for these wells. Given this, the Division approves the transfer of wells AW -5 and AW -7. The Division has received transfer agreements for wells BW -1 and 13W -3 but documentation was not submitted that well permits have been issued for these wells. Once well permits have been issued for wells BW -1 and BW -3 please submit a copy of these permits to the Division. The decision date for the bond release application is January 31, 2013. If you need additional time to address the remaining adequacy review issues please request an extension of the decision date. If you have any question please feel free to contact me. Sincerely, „ g Jared Ebert Environmental Protection Specialist CC: John Rich, Honeywood Coal Company via e -mail. Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines