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<br />DIVISION OF .MINERALS AVD GEOLOGY <br />t)MI)tlf'I`u ^1 ~.. \.411f 1~ RL40UI(lM <br />I } 1 t titMtntan 51 Rwln 115 <br />[]rnvrr. Colorado 8020) <br />Phon~•. (SOtI N6b-.1 i67 <br />FAx'. tt0f7 tlt1111(ffi <br />1larch 9. 2OO6/ <br />STATE OF COLORADO <br />L . <br />l (t(l)IL:1I)O <br />\ 1 1 J 'J ~ 1 <br />AtIN! RAI ti <br />--~_. -._ <br />C;EOLOGY <br />,,,11...... . •. . <br /> ifi i [1MYM <br />Cilen 11~illiams <br />~ ""'""" <br />Cotter Corpornion' "''^»''la„'Ix <br /> <br />>.O. Box .01) <br />I ., "vh,~Ortrrtrn <br />~11~1;1 <br />(o1or;7(lo 1l Y~Y 4,'~~.111' 1.!~ry <br />, 1. .a f, ~l.v,.l <br /> <br />Re: JD-R 11ine•, Pr•r2pir.'1'n. a•/-/18J-01.1, Determination OjDesigiruted alinin;; Opc~ruriou Suttees. <br />Dear ktr. 11'illiants: <br />On July Z%th, ?UDj thr Division of ~~linerals and Geology noticed ('otter Corporation ofan initial <br />finding that the JU-S Mine lit the dclinition ofa Desigrtatcd dining Operation (Dk1U) Ner Rule 7?.1(I ) <br />of the }lard Rock Rules and Regulations. 'fhe initial finding ,vas based on SNLN test results that showed <br />tunic-li,mting raterials wcm present in the waste rock attd ore that is being deposited at the surface oC <br />the operation. <br />Cotter Corporation notified the Division ,a ithin ~0 days on August 26"', 2005 that it disputed the initial <br />findings and rctluc~te;d timr to develop infomtation and facts to support its case in atcord:mce to Rule <br />7?.4(I ). The Division on September 2, 2u(15 acknowledged the dispute claim tmd set an initial date of <br />October U`", 2UUi for submission of intomtation and facts fir Division revieev in the matter. Several <br />meetings, delays and extensions by both parties to collect :utd clarity the modeling reports and other <br />parameters Icad to a oral report being submitted u, the Division on fcbruary S'". 3uiu,. <br />NIc:7sc find a copy of the final review of the modeling :utd report by our Dc Ham' Nnscy and Kate <br />Pickti~rd. The rcvic,s', like the reports submitted, covers four sites under D~tO consideration. However, <br />staff,vill be addressing each site individually for its final recommendations. <br />The Division StatThas c:uefulh reviewed the report and modeling concerning the JD-S ~linc. 'fhe <br />Division finds that Cotter Cnrporauon has not satisfactorily demonstrated that the operation floes not <br />expose or disturb acid or toxic materials in yuantities that do not adversoly af~fcct hwnan health, property <br />ur the environment. I_'ndcrground mining operations and deposition of nrueriuls on the surface appear <br />to create the potential to impact possible ayuitcrs in the Estrada and I:ayenta ,cologtcal fomrdions. <br />Inti,rnt:uiun :tnd modeling do nut establish th:u the potential fur groundwirter ham? does not exist. "fhc <br />operator and the Division have a responsibility to ensure 4tc water yuality is not diminished any further <br />than what naturally 7?ccurs. '1-hercti,re, the Divisiat_stands by its initial designation of the 1D_S as a <br />D\fO. ('otter may ekYt to gather additional growulwater infomtation and detailed infomtation on the <br />nun-u;msmissiveness of the faults, which H•ould support the ntodcling. Phis additional infomtation may <br />Icad to rc~consideratiun by the llivision of the D'vtU status. Cotter Corporation must infornt the Division <br />of its intentions in writing within 3U days of this correspondence concerning this issue. <br />