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<br />October 31, 2010 <br />Venture Resources, Inc. <br />PO Box 1974 (303) 619-6323 <br />Idalio Springs, CO 8o452 Fax: (303) 484-6369 <br />venthu•eresources(n•att.net <br />1V <br />CO Division of Reclamation, Mining & Safety <0\1 0 4 2010 <br />1313 Sherman St., Room 215 Divis;ul -s t? ieRTi811t5J11' <br />DyKer, CO 80203 4.0 gning W?d p ly <br />ttn: Jared Ebert <br />RE: M-2009-076 Application <br />Subject: Summary of Oct. 27`h site visit by DRMS and associated proposed engineering solutions. <br />Dear Mr. Ebert: <br />In a letter dated October 13, 2010, Venture Resources requested that DRMS representatives visit the site of our <br />proposed project to discuss, among other things, potential engineering solutions to further satisfy tailings <br />impoundment stability concerns which the DRMS had previously set forth in the September 8s` DRMS Second <br />Adequacy Review and in a similar letter on October 10`b. We would like to thank you and Tony Waldron for making <br />the trip to our project site the morning of October 27t' to visit with Patrick Maher (VR President and Certified <br />Geologist), Bruce Humphries (VR regulatory consultant), and myself <br />We feel that this site visit was important and that we were successful in fulfilling the objectives we had outlined in <br />our October 13`s request letter, namely: <br />1. Demonstrating to the DRMS the very remote, non-populated, non-developed, and limited hazard vicinity of <br />this proposed project. It was critical to witness this fast hand because a major topic in the Second <br />Adequacy Review (as presented to us on page one, items #1-2 of that Review) was a discussion regarding <br />"minimum acceptable safety factor[s]" and stability issues arising from earthquakes. We feel that the <br />"minimum acceptable safety factor[s]" the DRMS has prescribed (saturated slimes static FS to equal 1.5 <br />and saturated slimes seismic FS to equal 1.1) is extraordinary and excessive once one considers the actual <br />proposed site location. <br />We feel that this proposed impoundment relates to a "Low Hazard Dam" situation as defined by State <br />Engineer Standards (Rule 2-CCR 402-14.2.14.3) - "'Low Hazard Dam' is a dam for which loss of human <br />life is not expected, and significant damage to structures and public facilities as defined for a `Significant <br />Hazard' dam is not expected from failure of the dam." Asa Colorado Professional Engineer it is my job to <br />take into consideration risk and threat levels to life, property and the environment and incorporate that into <br />a safe design. <br />2. Demonstrating to the DRMS that this site is already impacted by decade's old historic, abandoned mine <br />waste rock and that this proposed project will actually provide for responsible reclamation and abatement of <br />acid mine water runoff. The DRMS should now be able to more fully understand the appeal we have made <br />in our permit work to consider Rule 6.4.20(e) which states: <br />The Board shall also consider current or pre-existing conditions and the degree to <br />which the proposed plan would provide for net improvements in the protection of <br />human health, property, or the environment. <br />Page 1 of 3