Cotter Corporation NSL Cañon City, Colorado

 CANON CITY — After three months of informal negotiations on how to monitor contaminated groundwater in Lincoln Park, the state and Cotter Corp. are unable to agree on what that task would cost.

The Colorado Department of Public Health on Oct. 26 issued an order requiring Cotter Corp. to adjust its $2.6 million surety to $9.9 million to cover estimated costs to install and monitor groundwater wells and prevent groundwater from seeping off site at the currently idle uranium mill just south of Canon City.

On Nov. 5, Cotter attorney Mark Mathews notified the state that Cotter disputes the state's estimate of $9.9 million and requested an informal mediation.

"We predicted Cotter would obstruct, delay and oppose," the amount of their cleanup bond, said Sharyn Cunningham, co-chairwoman for Colorado Citizens Against Toxic Waste. "They proved us right.

"Cotter had already privately negotiated the amount down from the original estimate of $17 million to $10 million. That amount only provides for watching the groundwater in our area, not actually actively cleaning it up," Cunningham said.

CCAT litigated the bond process used by the state and argued the current bond was inadequate.

"It brought the bond issue to from behind closed doors into the light of day," Cunningham said.

Cotter could delay the outcome of the bond issue if the mediation does not go in the company's favor. Next would be an adjudicatory hearing, which could be followed by a U.S. District Court lawsuit before the matter is settled, Cunningham said.

The state and Cotter officials also are trying to work out an agreement on decommissioning costs when the mill finally closes. State officials estimate the final cleanup cost at $43.7 million, while Cotter Corp. officials estimate it to be $23.2 million.

The draft decommissioning funding plan may be viewed at http://www.cdphe.state.co.us/hm/cotter/index.htm. Public comment will be accepted through Nov. 24.

Comments should be faxed to 303-759-05355 or mailed to Steve Tarlton, manager, Radiation Control Program, Colorado Department of Public Health, 4300 S. Cherry Creek Drive, Denver, CO 80246-1530. E-mail comments also can be sent to steve.tarlton@state.co.us