GENERAL42618

• Permit No: M1977081
• IBM Index Class Name: General Documents
• Doc Date: 3/9/2006
• Doc Name: Determination of Designated Mining Operation Status
• From: DMG
• To: Cotter Corporation
• Media Type: D
• Archive: No

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STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
March 9, 2006
COLORADO
D I V I S I O N O F
MINERALS
GEOLOGY
RECLAN ATI°N•NINING
SAEETY•SCIENCE
Bill Owens
Glen Williams covemor
Cotter Co oration ~ Russell George
Executive Director
P.O. BOX 700 Ronald W. Cattany
Nucla, Colorado 81424 Division DlfKtnr
/ Natural Resource Trustee
Re: JD-9 Mine, Permit No. M-1977-'306, Determination Of Designated fining Operation Status.
Dear Mr. Williams:
On July 27th, 2005 the Division of Minerals and Geology noticed Cotter Corporation of an initial
finding that the JD-9 Mine fit the definition of a Designated Mining Operation (DMO) Per Rule 7.2.1(1)
of the Hazd Rock Rules and Regulations. The initial finding was based on SPL,P test results that showed
toxic-forming materials were present in the waste rock and ore that is being deposited at the surface of
the operation.
Cotter Corporation notified the Division within 30 days on August 26th, 2005 that it disputed the initial
findings and requested time to develop information and facts to support its case in accordance to Rule
7.2.4(1). The Division on September 2, 2005 acknowledged the dispute claim and set an initial date of
October 17'h, 2005 for submission of information and facts for Division review in the matter. Several
meetings, delays and extensions by both parties to collect and clarify the modeling reports and other
parameters lead to a final report being submitted to the Division on February 8th, 2006.
Please find a copy of the final review of the modeling and report by our Dr. Harry Posey and Kate
Pickford. The review, like the reports submitted, covers four sites under DMO consideration. However,
staff will be addressing each site individually for its final recommendations.
The Division Staff has carefully reviewed the report and modeling concerning the JD-9 Mine. The
Division finds that Cotter Corporation has not satisfactorily demonstrated that the operation does not
expose or disturb acid or toxic materials in quantities that do not adversely affect human health, property
or the environment. Underground mining operations and deposition of materials on the surface appear
to create the potential to impact the perched aquifer in the Salt Wash sandstone units. Although the
aquifer is of poor quality, the operator and the Division have a responsibility to ensure the water quality
is not diminished any further than what naturally occurs. Therefore, the Division stands by its initial
desienation of the JD-9 as a DMO.
Per Rule 7.2.4(1)(b), Cotter Corporation may appeal this decision to the Boazd. If Cotter wishes to
appeal, please notify staff as soon as possible so that the matter maybe properly scheduled and noticed
for the upcoming Board Agenda and Hearing. At an appeal hearing, the burden of proof to reverse the
Office's determination shall be upon the operator.
Office of Office of Colorado
Mined Land Rxlamation Active and Inactive Mines GeoVogical Survey