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iii niiuiiiim iu- <br />February 27, 1998 <br />RECEIVED <br />Mr. Kent Gorham <br />Senior Environmental Protection Specialist <br />Division of Minerals and Geology <br />215 Centennial Building <br />1313 Sherman Street <br />Denver, CO 80203-2273 <br />MAR 0 2 1998 <br />Division of Minerals 8 Geology <br />RE: Golden Eagle Mioe (Permit C-81-013) Aooual Hydrology Report for 1997 <br />Dear Mr. Gorham: <br />By this letter, Basin Resources Inc. hereby submits two (2) copies of the 1997 Annual Hydrology <br />Report for the Golden Eagle Mine. As Picketwire Processing, LLC purchased the New Elk Mine <br />from Basin during 1997, this is the first AHR submitted for the Golden Eagle Mine only. That is, <br />previous AHRs included both the Golden Eagle and New Elk mines within the same report. Also, <br />with closure of the Golden Eagle Mine, the primary activity conducted at the site was completion <br />of the remainder of the reclamation work. <br />Basin is in receipt of yotu January 16, 1998 comment letter on the Golden Eagle AHR for 1996. We <br />would like to take this opportunity to respond to the questions you presented. Generally, we have <br />responded to your concerns within the analysis presented in the 1997 AHI2. However, specific to <br />your comments at the end of the letter, we offer the following: <br />1. Basin has initiated measures to assure completion of the water monitoring program in <br />accordance with the approved plan. Mr. Ron Thompson will continue to conduct the field sampling <br />at the site. He is familiar with the monitoring plan and has placed a high priority on conducting the <br />required sampling. Mr. Thompson has established weekly and monthly forms to be used to record <br />the required analyses. Basin has also contracted with Greystone to provide QA/QC for the program. <br />Each weeJt, Mr. Thompson will submit the monitoring results to Greystone for input into the data <br />base. Greystone will examine the data and determine any problem areas or non compliance with <br />the established program. A regular focus on hydrology monitoring will assure that the program will <br />be implemented as designed. <br />2. An evaluation of the bedrock well drawdown is included in the 1997 AHR. We request that this <br />submittal provide the information that you request rather than a technical revision to the permit. <br />We feel that this is one of the purposes of the AHR and continued data collection may also change <br />the predictions of hydrologic effects of mining. <br />5231 South Quebec Street • Greenwood Village, Colorado 80111 <br />Phone (303) 850-0930 • Fax (303) 721-9298 <br />Web Site: www.greystone-consultants.com • E-mail: greystone@greystone-consultants.cotn <br />Environmental Planners, Scientists and Engineers <br />