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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />September 14, 2011 <br />Mr. Chip Brown <br />Colowyo Coal Company, LP <br />5731 State Highway 13 <br />Meeker, CO 81641 <br />Re: Colowyo Mine (Permit Number C- 1981 -019) <br />Pond outfall inspections - first quarter and second quarter 2011 <br />Dear Mr. Brown: <br />STATE OF COLORADO <br />On April 7, 2011, the Division received Colowyo's submittal of the Pond Outfall Inspections for <br />the first quarter of 2011. On July 18, 2011, the Division received Colowyo's submittal of the Pond <br />Outfall Inspections for the second quarter of 2011. The reports include results of visual inspections <br />of sediment ponds and stock ponds at the Colowyo Mine, including water elevation, storage <br />capacity, and maintenance items. It appears that some ponds were not inspected. Please let me <br />know why inspection results for the following ponds were not included in the reports: PD1, PD2, <br />NTEP1, and EP 1. <br />Colowyo has indicated that all of the inspected pond embankments are stable and free of any <br />erosional or maintenance problems. This assessment generally correlates with what the Division <br />has found in its monthly inspections; however several maintenance items related to ponds have <br />been identified: <br />• Work Area Pond — repair discharge pipe. <br />• Loop Pond — clean flume. <br />• Gulch A Pond — fill animal burrows. <br />• Prospect Pond — level the flume if necessary. <br />• Section 28 Pond — fix leaks in primary discharge, repair erosion on embankment. <br />• East Taylor Pond — level the flume. <br />There is no indication that these items have been completed. Colowyo staff should perform any of <br />these maintenance items that have not been completed as soon as possible. <br />Colowyo lists the water storage capacities for each of the ponds in their current state (on the dates <br />of the inspections). Two of the listed ponds are scheduled for cleaning in 2011 per the second <br />quarter report: Gossard Loadout Pond and East Taylor Pond. Based on a comparison of estimated <br />existing storage capacities and the pond designs, the Division concludes that sediment has <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Office of <br />Mined Land Reclamation <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />