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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 />March 6, 2013 <br />Ms. Erin Scott <br />Water Quality Control Division <br />Colorado Dept. of Public Health & Environment <br />4300 Cherry Creek Drive South <br />Denver, CO 80246 <br />STATE OF COLORADO <br />RE: Cash and Who Do Mines; DRMS File No. M- 1983 -141; Unpermitted Point Source <br />Discharge <br />Dear Ms. Scott, <br />This letter is being sent to summarize our telephone conversation on February 20, 2013 <br />regarding the unpermitted point source discharge which is occurring at the Cash and Who Do <br />Mines in Boulder County. <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 />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />On August 24, 2011, the Division of Reclamation, Mining and Safety (DRMS) conducted an <br />inspection of the Cash and Who Do Mines and found that the 3` Level Adit was discharging <br />water to the ground surface. DRMS issued a possible violation pursuant to C.R.S. 34-32 - <br />116(7)(g) for failure to minimize disturbance to the prevailing hydrologic balance of the affected <br />land and of the surrounding area and to the quality and quantity of water in surface and <br />groundwater systems and a possible violation of Hard Rock Rule 3.1.6(1)(b) for failure to <br />comply with applicable federal and Colorado water quality laws and regulations, including <br />statewide water quality standards and site - specific classifications and standards adopted by the <br />Water Quality Control Commission. On October 12, 2011, the Mined Land Reclamation Board <br />upheld the above referenced violations and ordered the Permittee to obtain a discharge permit <br />from the Colorado Department of Public Health and Environment — Water Quality Control <br />Division (WQCD). <br />On January 28, 2013, DRMS received a copy of the discharge permit application which was <br />submitted to the WQCD. As we discussed, water from the mine pool is discharging from the 3 <br />Level Adit at a rate of between 5 — 10 gpm. As the water flows from the adit, it enters into a <br />shallow excavation on top of a waste rock pile. As noted in several of DRMS's inspection <br />reports, the water appears to infiltrate into the waste rock pile. DRMS has not observed the water <br />expressing at the toe of the waste rock pile nor has the water been observed directly entering <br />waters of the state. However, neither DRMS nor the WQCD have conducted a survey of the <br />drainage basin below the Cash and Who Do Mines to determine if the water is expressing to the <br />surface at a lower elevation. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />