The Mined Land Reclamation Board issued another cease-and-desist order on February 18, 2022, for Grand Island Resources and the Cross gold mine, but a letter released states that Cross Mine is cleared of groundwater discharge complaints.

The Colorado Mined Land Reclamation Board is a multi-interest citizen board which establishes the regulations, standards, and policies that guide the Division of Reclamation, Mining and Safety. The Mined Land Reclamation Board issued financial penalties to Grand Island Resources in Nederland during a regular meeting on January 19, 2022. The Board had conducted an enforcement hearing for Grand Island Resources on Thursday, December 16, 2021, and issued a ceaseand desist order for mining at the Cross and Caribou mines above Nederland.

The Board considered that gold, copper, silver, zinc, and lead in mining discharge is a possible violation requiring a cease-and-desist order, corrective actions, and civil penalties for failure to minimize disturbances to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quantity or quality of water in surface and groundwater systems both during and after the mining operation and during reclamation.

The hard rock operation four miles northwest of Nederland off Caribou Road consists of 8.95 acres, and is at the headwaters of Coon Track Creek, which flows into the Middle Boulder Creek and then to the Barker Reservoir in Nederland. The company operates two mines separated by the creek, with underground mining operations of the Caribou Mine and Cross Mine.

Staff recommended and the Board approved a motion to issue a ceaseand desist order immediately for underground operations and those not necessary to fulfill the order, with four corrective actions to be taken, with the Board to re-evaluate the fine at the January meeting.

At the January 19 meeting, staff member Amy Eschberger provided a status update and the civil penalties. The Division recommended a fine for 85 days at $200 a day for a total civil penalty of $17,000 with all but $5,000 suspended.

The operator has complied with the cease-and-desist order, and the division completed a site inspection on January 11, Eschberger said. At this time, the Caribou and Cross Mine discharges into Pond 1, and the discharge into a box.

A back filtration system was installed in November. Since December, the full system has been in place, and Pond 2 is not being used. The system is now running 24/7.

On February 18, the Board issued another cease-and-desist order. According to the order, based on the findings of fact, the Board finds the operator in violation for its failures to minimize disturbances to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quality of water in surface systems during the mining operation and during reclamation.

The order states: “The Operator shall cease and desist any further activities underground, except those activities approved by the Division as necessary to comply with the Conditions of this order, protect water quality, prevent damage to off-site areas, complete reclamation, or to protect public health and safety, until all of the corrective actions have been resolved to the satisfaction of the Division.”

The Board imposed four corrective actions including filing a technical revision to be approved by April 28, 2022, submitting within 30 days an interim financial warranty in the amount of $162,841 to operate any necessary water treatment system at the site, and appearing at the Board’s December 2022 meeting to provide a status update on the corrective actions required.

The Board imposed a civil penalty for 85 days of the violation at $200 per day for a total of $17.000. All but $5,000 is suspended if the Operator timely complies with all the corrective actions. If the Operator does not comply in a timely manner with the corrective actions, then the suspended civil penalty in the amount of $12,000 will be due within 30 days of the deadline for corrective action.

In addition, the Operator was required to post an interim financial warranty in the amount of $162,841 to operate the water treatment system at the site. The interim financial warranty and the unsuspended civil penalty must be posted with the Division on or before March 21, 2022.

Michael A. Cunningham, senior environmental protection specialist, released a letter stating that Cross Mine is cleared of groundwater discharge complaints. “The Division of Reclamation, Mining and Safety (DRMS) received multiple citizen complaints from November 2021 through January 2022 regarding the Cross Gold Mine.

“While various concerns were expressed in the complaints, the primary concern (under DRMS jurisdiction) was regarding potential impacts the mine discharge may have had on surface water and groundwater resources in the vicinity of the mine, particularly to downstream wells.

“Upon reviewing the available water quality data for the Cross Gold Mine and the surrounding area, DRMS has found no evidence indicating groundwater discharges from the mine led to degradation of surface and groundwater resources.”

The letter is printed in full in this edition of The Mountain-Ear. In response to questions from The Mountain-Ear, Cunningham said that the Mined Land Reclamation Board imposed a cease-and-desist order which prohibited any further activities underground, except those activities approved by the Division.

Grand Island Resource (GIR) has requested and received approval to conduct limited surface and underground activities related to managing the water treatment system. The Division conducted an inspection of the Cross gold mine on January 11, 2022, and found that GIR was in compliance with the cease-and-desist order.

As part of the Division’s investigation into the citizen complaints, all available water quality data was reviewed, including data provided from residents who have tested their drinking water. The Division found there was no evidence that water quality had been impaired as the result of GIR’s violation of discharge standards.

The Division will consider and review any additional water quality data as it becomes available. If any subsequent review of data indicates the Cross gold mine has adversely affected surface or groundwater resources, the Division will take the appropriate enforcement actions against GIR.

Grand Island Resources has responded to the violations in a letter to The Mountain-Ear. They have said that “Grand Island Resources (GIR) has been founded on and dedicated to our mission to prove that existing contaminated mining sites and tailings can be remediated and operated while keeping the environment and our water clean and safe, all financed by private capital.” They are working hand in hand with federal, state, and local agencies to make all the necessary investments and capital improvements that were not made by previous operators of the Cross and Caribou Mines.

They are currently installing modern, proven water treatment infrastructure to replace the last 50 years of antiquated and obsolete water purification methods and treatments with state-of-the-art systems. “Our plan has always been to become longterm good neighbors by establishing a 21st-century mining operation that future generations will appreciate.

“We are replacing legacy systems with new ones that will meet or exceed current industry standards. Since early spring of 2021, we have commissioned detailed scientific and engineering studies on how to best treat groundwater discharge from the mines.”

For more information about the Mined Land Reclamation Board and meetings, go to https://drms.colorado. gov/boards/mined-land-reclamationboard/ meeting-schedule.