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III IIIIIIIiilllllii <br />999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <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 23, 2001 <br />Mr. Jim Tatum <br />Jim Tatum and Associates <br />8703 Bonhomme <br />Houston, TX 77074 <br />Via FAX: (713) 995-7191 <br />Re: Property owned by Mr. Floyd Chavez <br />Dear Mr. Tatum: <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Michael B. Lung <br />Dimsion Director <br />We are in receipt of your letter dated August 22, 2001, in which you discuss the borehole <br />on the Chavez property. Following my discussions with Ann Tatum of yesterday and <br />earlier today, it is our understanding that the letter is not intended to be a "citizen's <br />complaint" notification, but that such notification may be submitted in the future. <br />We have been working with both Mr. Chavez and Basin Resources to assess and resolve <br />the referenced situation. Kent Gorham of the DMG staff briefed Ann Tatum about the <br />situation by telephone earlier toda}~. Kent had previously planned to meet with both Mr. <br />Chavez and Basin Resources at the Chavez property next week to further discuss the <br />situation. We understand that you want to attend the meeting next week. As discussed <br />with Ann Tatum earlier today, Kent will coordinate with you, Mr. Chavez and Basin <br />Resources to arrange a meeting on Wednesday (August 23, 2001) in the local area. <br />Please feel free to contact Kent or me with any questions. <br />