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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman SL, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303 832-0106 <br />my 21, 2005 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Quarterly Report Review, 1st Quarter 2005, New Elk Mine, fiC-81-012 <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />0.E CLANATION•MINING <br />SAf FTY•SCIENCE <br />gm Owens <br />Governor <br />Russell George <br />Executive DlreCtor <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology has completed review of the 1 Gt quarter reports submitted <br />for sediment ponds and refuse piles for the New Elk Mine. Please find the results of this review <br />under the respective headings below. <br />Sediment Ponds <br />The reports meet the requirements of Rule 4.05.9(17) and Rule 4.05.9(21). Water and <br />sediment storage are noted. Pond B is scheduled for a sediment survey in the next quarter. <br />Refuse Piles <br />The two reports (RDA and DWP) meet the requirements of Rules 4.09.1(11) and 4.10.2(2). The <br />inspection report for the RDA documents completion of the re-shaping of the operational pile <br />surface. Please document in the next quarterly report that maintenance on the riprap <br />downdrains was completed. The DWP remains to be compaction tested with a loaded haul <br />truck. <br />We have no further questions at this time. Please submit future reports to the Division within 30 <br />days following the end of the previous calendar quarter. If you have any questions, please calf <br />me. <br />Sincer ly, <br />d~ <br />Ken A. Gorham <br />Environmental Protection Specialist II <br />Once of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />