The Mined Land Reclamation Board conducted an enforcement hearing for Grand Island Resources in Nederland on Thursday, December 16, 2021, and issued a cease-and-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.

According to the Colorado Division of Reclamation, Mining and Safety (DRMS) staff member Amy Eschberger, the hard rock operation four miles northwest of Nederland off Caribou Road is 8.95 acres, and is at the headwaters of Coon Track Creek, which flows into the Middle Boulder Creek to the Barker Reservoir in Nederland.

The company operates two mines separated by the creek, with underground mining operations taking place at the Caribou Mine and Cross Mine. Eschberger claims that the water management system is no longer adequate.

No water sampling data has been reported to DRMS. Discharge is treated in pond one and then sent to settling ponds and then to pond two, where it is discharged into the creek. On February 4, 2020, Grand Island received a notice of non-compliance after the 2019 collapse of the Idaho Tunnel, causing metals to flow into the discharge.

The tunnel collapse was restricting the mine flow. On February 12, 2020, DMRS sent notice of compliance problems. On April 7, an inspection report found multiple issues. On September 21, 2021, another notice of noncompliance was received, showing zinc, cadmium, lead, copper, and silver in the discharge.

John Henderson from Lafayette said he had worked with Tom Hendrickson in the mines, and presented a different side of the story. They have ponds, he said, where they use lime at the top of the Caribou drainage, set to aquatic live standards. Originally, in 1974, Tom Hendricks put his entire life in at the mine. He passed away in January, 2020. He demonstrated a great deal of knowledge and good housekeeping at this site.

Grand Island has continued to allow recreational purposes and is committed to compliance. The company has organized a campaign for receiving complaints, and intends to address them. “We intend to be responsive…to meet standards.”

The tunnel collapse turned into a major remediation project, and they are trying to control water with the micro-sediments. Daniel Takami, president of Grand Island Resources, said they will completely rehabilitate the Cross and Caribou mines. “We are fixing what was broken. We have responsibility to our residents of Nederland and we drink the water. We are dedicated to our mission to clean up the sites and will operate them in a clean manner,” said Takami.

Attorney Gabe Racz said DRMS does not have authority to issue this cease and desist order. The Colorado Water Quality Division is the only authority that can do this, he noted. Grand Island is working quickly, he said, and DRMS should await the WQD report.

Eschberger said they have received 48 complaints of potential well problems for two miles, all the way down to the reservoir. She added that they are looking at data from Boulder, which did sampling down the creek. On November 22, 2021, DRMS met with staff from Boulder County Public Health and Community Planning and Permitting to discuss water quality compliance. They noted that the operator should inspect on a quarterly basis.

The Division met with the operator to understand what they are doing at the site and discussed the new water treatment system, which has now been installed. They had not known about the collapse of the Idaho Tunnel, and did not know about the pilot system, which apparently was ineffective in bringing the mines back into compliance.

Staff recommended and Board Member Lauren Duncan moved to issue a cease-and-desist order immediately for underground operations and those not necessary to fulfill the order, with the following corrective actions:

· Require the operator to submit by February 28, 2022, a technical revision to modify the water management and treatment program for the site to sufficiently address all water quality issues, and provide a surface water and groundwater monitoring program that meets all applicable requirements. The Technical Revision must be approved by DMRS within 60 days by April 29,2022.

· Require the Operator to submit by the end of every calendar quarter, beginning with the first quarter of 2022, a report outlining the activities undertaken at the site during the current quarter and any activities planned for the next quarter to ensure compliance. This quarterly report shall also summarize any actions or findings of the Water Quality Division of the Colorado Department of Public Health and Environment regarding the site discharge permit.

· The Board will reevaluate the fine at the January meeting.

The next meeting of the Mined Land Reclamation Board will be on January 19, 2022. The YouTube broadcast of proceedings of the Colorado Mined Land Reclamation Board is provided only as an informational service: https://www.youtube.com/channel/UCDrrAO8bIPFlOwce-yH1fWA.