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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />April 20, 2007 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Quarterly Report Review, 1" - 4"' Quarters 2006 <br />Lorencito Canyon Mine, #C-96-084 <br />Dear Mr. Thompson: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining, and Safety (Division) has completed review of the 1St - 4th <br />quarter reports submitted for sediment ponds, excess spoil fills, and discharge monitoring <br />reports (DMR's) for the Lorencito Canyon Mine. Please find the results of this review under the <br />respective headings below. Items in bold text are listed for the second consecutive review letter <br />and required your attention. <br />Sediment Ponds <br />The four quarterly reports meets the requirements of Rule 4.05.9(17). The sediment marker in <br />pond 9 was reset in the second quarter as previously requested by the Division. <br />Excess Spoil Fills <br />Three excess spoil fills are inspected at the site. Each quarterly inspection report meets the <br />requirements of Rules 4.09.1(11). <br />Discharge Monitoring Reports (DMR1 <br />Pond discharge occurred in the third quarter as a result of one or more rainfall events. <br />Exceedance of total suspended solids (TSS) and settleable solids (SS) occurred from discharge <br />sampled from ponds 7, 8, and 9. DMR's indicate unusual values reported for TSS and SS. <br />Please submit the lab sampling results (lab sheet) for these three pond discharges. No <br />discharge was observed during any other quarter during 2006. <br />We have no further questions or concerns at this time. If you have any questions, please call <br />me. <br />Sincerely, <br />Ke orham <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction Durango Active and Inactive Mines <br />