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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 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />August 15, 2008 v <br />?-a Mr. H. Bruce Humphries <br />Regulatory Permits Management, Inc. <br />7425 Winter Berry Lane <br />Castle Rock, CO 80108 <br />N" CONFIDEN NC <br />Re: Adequacy Review #4; File No. P-2007-06q v <br />Notice of Intent (NOI) to Conduct Prospecting Operations, COAG Corporation, <br />Dear Mr. Humphries: <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining, & Safety (DRMS) has reviewed the responses to <br />Adequacy Review #3 by COAG Corporation dated July 8, 2008 for the Notice of Intent to <br />Conduct Prospecting Operations, File No. P-2007-069. DRMS needs the following additional <br />information before we can provide a decision on the NOI: <br />1) DRMS remains very concerned about impacts to the hydrologic balance. In accordance with <br />Rule 3.1.7(7)(a), DRMS has reason to believe that there is reasonable potential for an adverse <br />impact to ground water, for two reasons: First, applicant has noted the existence of standing <br />water inside the mine workings, yet the applicant has provided very little information on the <br />layout of the underground mine working and of the ground water and surface water hydrology of <br />the site in relation to the workings. Second, due to the history and complexity of the district, it is <br />conceivable that underground workings of the site may be interconnected with other workings <br />beyond the footprint of the NOI boundary. This could create the potential, as a result of operator <br />activities, for hydraulic communication of mine inflows to other workings in the district and to <br />surface water bodies such as Clear Creek. This potential is compounded by the unknown but <br />reasonable probability that the water quality of the mine pool is degraded relative to ambient <br />water quality of surface and ground water in the area. <br />Applicant is therefore required to provide the following: <br />A) A plan map and cross-section of the underground workings showing all of the workings <br />connected directly to the Franklin and Freighter's Friend shafts. This map should also <br />show all areas to be sampled, areas from which ore and waste rock are expected to be <br />removed, the static water level of ground water, areas of the mine containing standing <br />water, and depth to the water table. <br />B) A map or maps that show to the satisfaction of the Division the presence or lack of <br />interconnection with workings of other mines outside the surface footprint of the NOI <br />area of work. <br />Office of <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines