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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832106 <br />April 12, 2007 <br />Ron Thompson <br />Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: Quarterly Report Review, 1" - 4th Quarters 2006, New Elk Mine, #C-81-012 <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 Direcor <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology has completed review of the 2006 quarterly reports submitted for <br />sediment ponds, refuse piles, and pond discharges for the New Elk Mine. Please find the results of this <br />review under the respective headings below. <br />Sediment Ponds <br />The reports meet the requirements of Rule 4.05.9(17. As noted, the annual inspection required by Rule <br />4.05.9(14}-(15} would normally be wnducted in the 4"quarter for each impoundment. However, deep <br />snow during December 2006 has delayed this annual reporting until the 15 quarter of 2007. Sediment <br />cleanout of the pond 8 was noted and a notation stating the need for a survey of the pond was noted. <br />Please submit the survey information for pond 8 with future quarterly reporting. Pond 7 inlet area <br />was cleaned of sediment accumulation in the 3rtl 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). Water level <br />measurement in the three piezometers at the RDA was noted in each quarter. Third quarter reports for <br />the RDA document the need for maintenance in the west downdrain. Please ensure that this work is <br />completed as equipment is available in 2007. Noted by the Division is that the second page of the <br />RDA report is a duplicate of the second page of the DWP report. Regrading and compaction testing at <br />the DWP before equipment was moved to the Lorencito site was documented in the 4 quarter. <br />Discharge Monitoring Reports <br />No discharge was observed from any of the ponds or containments in 2006. This is consistent with field <br />inspections conducted by the Division over the reporting period reviewed. <br />We have no further questions at this time. Please submit future reports to the Division within 30 days <br />following the en of the~previous calendar quarter. If you have any questions, please call me. <br />Sincerely, <br />/ ~~ ~ / Oi.~-.--- <br />Kent A. Go <br />Environmen al Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Attive and Inactive Mines <br />