Permit File - 8/5/2008, 3:18:55 PM-SW1

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Letter to Richard Blubaugh 2 July 22, 2008 Centennial Proiect, Receipt of NOI File No. P-2008-043 You have placed the details of the proposed ground water monitoring wells in the confidential section of the NOI. Please provide your reasoning and rationale, in terms of SB-228, for excluding this information from the public record. The DRMS is sending you a review of the NOI's confidential portions under separate cover. That review will not be placed in the public record at this time, but depending on your rationale relative to confidentially of the monitoring wells, portions of the DRMS separate review maybe placed into the public record at a future date. In accordance with SB-228, you will be notified in advance of information DRMS intends to transfer from the confidential file into the public record, and have the opportunity to appeal the DRMS determination to the Mined Land Reclamation Board prior to the transfer. Section III, item 3 of the NOI states that approximately 52.2 cubic yards of earth will be moved in the conduct of the proposed prospecting. DRMS has estimated that 170 bank cubic yards of material will be excavated from the proposed mud pits based on the mud pit sizing information provided in section III, item 6 of the NOI. The 170 cubic yard amount was used by DRMS in estimating earth moving costs for reclamation. Please provide an explanation of the derivation of the 52.5 cubic yard amount or agree to the larger amount determined by DRMS. The NOI proposes to seal the upper portions of the holes using bentonite chips. In accordance with rule 5.4.2(5), the DRMS will instead require that the upper ten feet of each hole be filled with Portland cement grout. Since the lands to be drilled at least have the potential to be cropped, DRMS will require that any casing be cut off and removed and that the top of the cement plugs be completed three feet below ground surface, with the upper three feet backfilled with native soil and mounded. DRMS has incorporated the cement plugging into the estimated reclamation costs. DRMS requires that Powertech commit to the following procedure and requirement for this NOI: The surface of the backfilled mud pits will not exceed the following limits: 1. The concentration of radium-226 or radium-228 in soil may not exceed the background level by more than 5 picocuries per gram (pCi/g) or 0.185 becquerels per gram (Bq/g), averaged over the first 15 centimeters (cm) of soil below the surface; and 2. The concentration of natural uranium in soil, with no radioactive decay products present may not exceed the background level by more than 30 pCi/g or 1.11 Bq/g, averaged over the top 15 cm of soil below the surface; and 150 pCi/g or 5.55 Bq/g, average concentration at depths greater than 15 cm below the surface, so that no individual member of the public will receive an effective dose equivalent in excess of 100 mrem per year or 1 millisievert (mSv) per year. The DRMS will require test results demonstrating that these limits have not been exceeded; the tests are to be conducted during or immediately following the reclamation of the mud pits. If these limits are exceeded, DRMS may require appropriate off site disposal of mud pit contents. DRMS has estimated the costs to reclaim your proposed prospecting disturbances, including plugging and abandonment of all drill holes, at $55,000.00 (see enclosed reclamation cost estimate). Bond in this amount must be provided. Prospecting bond forms are available online at http://minim.state.co.uslProspectingForms htm. You may not commence prospecting operations until the