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iii riiiiiiiiiiii iii • <br />STATE OF COLORADO <br />~~ <br />~~Ft: DIV1510N OF h11NERALS AND GEOLOGY <br />Dr;.u II1111N ill N.IIULI N,PSUUlCCS <br />i I ; Sherman SI .Room 215 <br />prm~rr. G>loradir AU!U3 <br />I'honr: 1 (1151 RbG-ISbi <br />rnx 1x,aat~-~lloa <br />April 18, 1999 <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />0. E C L A M A T I O N <br />MIN ING•5.4FETY <br />Mr. Kurt Nielsen e~llowen, <br /> <br />fib; American Soda LLC Gmernnr <br />E w,l~n,•r <br />c~e <br />.O. BOX 2070 s <br />Esecuuve Oireuor <br />Glenwood Springs, CO 81602 r.hchael B. Lonp <br /> <br />~mL. Nr-n--L Divn~on Dbecro~ <br />RE: Adequacy of the Application, Yankee Gulch Project, File No. NI-99-002 <br />Dear Mr. Nielsen: <br />The following issues remain to be addressed for the Yankee Gulch Project reclamation permit <br />application to meet the minimum requirements of the Colorado Mined Land Reclamation Act for <br />permit issuance. Please respond to each of the listed items prior to the established decision date of May <br />3, 1999 or provide a written request for extension of the decision date. <br />1. The Division of Minerals and Geology (DMG) has determined that the Yankee Gulch Project is <br />a Designated Mining Operation (DMO) as defined in Rule 1.1(14) of the Hard Rock/Metal Mining <br />Rules and Regulations of the Mined Land Reclamation Board (Rules). The basis for this determination <br />is found in Rule 1.1(l4)(b), which states mining operations will be designated if "toxic or acid-forming <br />materials will be exposed or disturbed as a result of mining operations." The proposed mine plan may <br />expose or disturb toxic materials in the following two ways. <br />a) Drill holes used to inject processing solution and extract dissolved nahcolite from the tazget <br />mining zone will be drilled through the lower aquifer. Some zones within the lower aquifer are <br />known to exhibit concentrations of certain toxic constituents that exceed human health andfor <br />agricultural standards for ground water. The lower aquifer is further known to exhibit upward <br />gradients in the northern part of the Piceance Basin. This leads to the potential for comingling <br />of poorer quality lower aquifer water with the ground water of the upper aquifer if leakage were <br />to occur along the cased and cemented production wells. <br />b) The heated and pressurized solutions injected into the saline zone for recovery of nahcolite are <br />intended to dissolve only sodium bicarbonate. During this process the heated solution may <br />dissolve other minerals containing toxic elements such as fluoride and possibly barium. Other <br />elements of concern that have been dissolved by ground water in contact with the rocks of the <br />Parachute Creek member of the Green River formation include boron and lithium. It reasonable <br />to assume that toxic constituents documented to be dissolved in ground water in the lower <br />aquifer may also be dissolved by the solution mining injection fluid. <br />As a DMO, an Environmental Protection Plan (EPP) will be required for the Yankee Gulch Project. <br />The required elements of an EPP are listed in Rule 6.4.20. DMG has completed a review of the current <br />