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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 />STATE OF COLORADO <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Date: January 23 2013 Mike King <br />, Executive Director <br />To: Loretta Plneda Loretta E. Pineda <br />Director <br />CC: Sandra Brown, David Berry <br />From: Brock Bowles <br />RE: Elk Creek Mine, Permit No. C- 1981 -022, Oxbow Mining, LLC <br />MR -101, Regulatory Authorities for the Electrical Generating Station <br />In our meeting on January 16, 2013, we discussed what agency regulates the Elk Creek Mine electrical <br />generating station. Besides the agencies listed in the Oxbow response (COGCC, BLM, ONRR, EPA, <br />OSHA, WQCD, APCD), possible entities are the Colorado Public Utilities Commission (PUC) and the <br />Delta Montrose Electric Association (DMEA). I called PUC and DMEA to clarify the regulations and <br />agreements and got the following responses: <br />Mr. Steve Brown, a PUC staff engineer, explained that PUC oversees the sale of electrical power to <br />DMEA but, DMEA is a member run cooperative and the sale of electrical power from DMEA is governed <br />by its members. PUC does not regulate DMEA and only investigates formal complaints filed against <br />DMEA. PUC is aware of the Elk Creek Mine project; however, they are not directly involved. PUC is <br />very supportive of the project because methane (a potent greenhouse gas) is being captured. <br />Mr. Joe Schlaefer of DMEA explained that there is an interconnection agreement between DMEA and the <br />Elk Creek Mine. This agreement ensures that the electricity coming from the Elk Creek generator will <br />meet a voltage standard before a computer controlled breaker allows the generator to feed the DMEA <br />power grid. Elk Creek Mine and DMEA do not have an energy load (quantity) agreement. DMEA does <br />monitor the breaker and metering status of the Elk Creek substation. <br />The Elk Creek generating station is located on private surface. Neither Mr. Brown nor Mr. Schlaefer is <br />aware of any regulatory agency that would have authority over a private generating station. According to <br />Mr. Brown (PUC), the generating station is too small for the Federal Energy Regulatory Commission to be <br />interested. <br />If you have any further questions or concerns, please do not hesitate to ask. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />