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August 15, 2008 <br />Pg. 2 <br />C) A geologic map of the mine and surrounding areas that show all geologic and lithologic <br />units and all possible geologic structures that could act either as conduits or barriers to <br />ground water flow. <br />D) USGS topographical maps indicate the presence of ephemeral streams in the vicinity. <br />Therefore, applicant must conduct a survey of and provide a map showing all surface <br />water bodies within a mile of the site, including streams, springs and ponds. <br />E) As soon as practicable, applicant must collect a sample of water from the standing mine <br />pool inside the mine, and samples of any discernible inflows into the mine workings. A <br />list of required analytes is attached. <br />Be advised that if operator activities result in a permanent discharge of water, operator will be <br />liable for damage to the hydrologic balance and assumes responsibility for remediation or <br />treatment to the discharge required to bring the water quality into compliance with applicable <br />water quality regulations for as long as necessary, in perpetuity if needed. <br />2) Applicant has proposed the installation of removable shaft covers before commencement of <br />prospecting activities to avoid the necessity of posting financial warranty for shaft safeguarding. <br />Applicant must provide verification that these structures have been installed to the approval of <br />the Division before the NOI can be approved. <br />3) DRMS has on file financial warranty in the amount of $7,000.00, and we are awaiting <br />submittal of the necessary form to accompany the financial warranty before the NOI can be <br />approved. <br />Please be advised that COAG Prospecting Project, File No. P-2007-069 may be deemed ' <br />inadequate, and the application may be denied on August 18, 2008 unless the applicable items <br />are addressed to the satisfaction of DRMS. If more time is needed to complete your reply, <br />DRMS can grant an extension to the decision date. This will be done upon receipt of a written <br />waiver of your right to a decision by the deadline date of August 18, 2008 and request for <br />additional time. This must be received by close of business on August 18, 2008. <br />Please feel free to call me at 303-866-3927 with questions. <br />S' cerely, <br />David Bird <br />Environmental Protection Specialist <br />cc: Mickey Fouts - COAG Corporation <br />David Berry - DRMS <br />Tony Waldron - DBMS