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1, ~, g,~ m, cb rn <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />t 3 t 3 Sherman St, Room zt s C O L O RA D O <br />Denver, Colorado 80203 DIVISION O F <br />Phone: (303) 8663567 MINERAL S <br />FAX: (303) 032106 G E O L O G Y <br />0.ECLA MATIO N•NINING <br />SAFETT•SCIfNCE <br />Mazch 9, 2006 <br />8111 (Teens <br />Glen Williams / cGVemor <br />Cotter Co oration V Ru55eu ceo,ge <br />rp Executive Director <br />P.O. BOX 700 Ronald W. Cottony <br />Nucla, Colorado 81424 Division Director <br />/ Natural Resource Trustee <br />Re: JD-9 Mine, Permit No. M-1977-`306, Determination Of Designated fining Operation Status. <br />Deaz Mr. Williams: <br />On July 27th, 2005 the Division of Minerals and Geology noticed Cotter Corporation of an initial <br />finding that the JD-9 Mine fit the definition of a Designated Mining Operation (DMO) Per Rule 7.2.1(1) <br />of the Hazd Rock Rules and Regulations. The initial finding was based on SPLP test results that showed <br />toxic-forming materials were present in the waste rock and ore that is being deposited at the surface of <br />the operation. <br />Cotter Corporation notified the Division within 30 days on August 26"', 2005 that it disputed the initial <br />findings and requested time to develop information and facts to support its case in accordance to Rule <br />7.2.4(1). The Division on September 2, 2005 acknowledged the dispute claim and set an initial date of <br />October 17`h, 2005 for submission of information and facts for Division review in the matter. Several <br />meetings, delays and extensions by both parties to collect and clarify the modeling reports and other <br />pazameters lead to a final report being submitted to the Division on February 8`h, 2006. <br />Please find a copy of the final review of the modeling and report by our Dr. Harry Posey and Kate <br />Pickford. The review, like the reports submitted, covers four sites under DMO consideration. However, <br />staff will be addressing each site individually for its final recommendations. <br />The Division Staff has carefully reviewed the report and modeling concerning the JD-9 Mine. The <br />Division finds that Cotter Corporation has not satisfactorily demonstrated that the operation does not <br />expose or disturb acid or toxic materials in quantities that do not adversely affect human health, property <br />or the environment. Underground mining operations and deposition of materials on the surface appeaz <br />to create the potential to impact the perched aquifer in the Salt Wash sandstone units. Although the <br />aquifer is of poor quality, the operator and the Division have a responsibility to ensure the water quality <br />is not diminished any further than what naturally occurs. Therefore, the Division stands by its initial <br />desi>?rtation of the JD-9 as a DMO. <br />Per Rule 7.2.4(1)(6), Cotter Corporation may appeal this decision to the Boazd. If Cotter wishes to <br />appeal, please notify staff as soon as possible so that the matter maybe properly scheduled and noticed <br />for the upcoming Board Agenda and Hearing. At an appeal hearing, the burden of proof to reverse the <br />Office's determination shall be upon the operator. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />