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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 C O L O RA D O <br />Phone: (303) 866.3567 DIVISION O F <br />RECLAMATION <br />FAX: (303) 832-8106 <br />MINING <br /> <br />April 14, 2009 SAFETY <br />Ron Thompson Bill Ritter, Jr. <br />Peak Project Management Governor <br />34115 County Road 20.8 Harris D. Sherman <br />Trinidad CO 81082 Executive Director <br /> Ronald W. Cattany <br />RE: Quarterly Report Review, 1St - 4th Quarters 2008, New Elk Mine, #C-81-012 Division Director <br /> Natural Resource Trustee <br />Dear Mr. Thompson: <br />The Division of Reclamation, Mining, and Safety has completed review of the 2008 quarterly reports <br />submitted for sediment ponds, refuse piles, and pond discharges for the New Elk Mine. Please find the <br />results of this review under the respective headings below with special attention to questions or <br />comments in bold text. <br />Sediment Ponds <br />The reports meet the requirements of Rule 4.05.9(17). The annual inspection required by Rule <br />4.05.9(14)-(15) was conducted in the 2nd quarter of 2008. For the second consecutive year, a notation <br />stating the need for a survey of the pond 8 was noted. However, no survey was completed in 2008. <br />Please ensure that an accurate sediment survey is completed for pond 8 in 2009. Cleanout was <br />also recommended for Containment #1 at the West Mine. Please ensure that this containment is <br />cleaned of sediment in 2009. The general description for Pond 1 is incorrect. Please correct this <br />description in future reports. No other issues or concerns were documented which is consistent with <br />field inspection. Annual MSHA inspection reports for pond 8 were received January 26, 2009 (for 2008). <br />No unusual observations or issues were documented. <br />Refuse Piles <br />The two reports (RDA and DWP) meet the requirements of Rules 4.09.1 (11) and 4.10.2(2) for all four <br />quarters in 2008. Water level measurements in the three piezometers at the RDA were noted in each <br />quarter as required. Third quarter water depth is erroneous for TH-1. For the RDA, please add that <br />Highway 12 is potentially threatened by the RDA should failure occur. <br />Discharge Monitoring Reports <br />No discharge was observed from any of the ponds or containments in the first three quarters of 2008. <br />This is consistent with field inspections conducted by the Division over that period. Discharge from Pond <br />001 to the Purgatoire River due to dewatering of the underground workings was recorded and sampled <br />late in the 4th quarter. <br />We have no further questions at this time. Please submit future reports to the Division within 30 days <br />following the end of the previous calendar quarter. If you have any questions, please call me. <br />Sincer a4-t-- <br />Ken A. Gorham <br />A'y' <br />Environmental Protection Specialist III <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines