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REVISION - 4/20/2009, 11:24:03 AM-JWD
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REVISION - 4/20/2009, 11:24:03 AM-JWD
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Entry Properties
Last modified
6/15/2021 11:34:56 AM
Creation date
4/20/2009 3:33:58 PM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
P2008043
IBM Index Class Name
REVISION
Doc Date
4/17/2009
Doc Name
Response to March 31, 2009 Letter
From
Powertech (USA) Inc.
To
DRMS
Type & Sequence
MD2
Email Name
ACS
Media Type
D
Archive
No
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FOGNANI &FAUGHT,PLLC <br />Mr. Allen C. Sorenson d,lers a[ Ln;c <br />April 15, 2009 <br />Page 5 <br />C.R.S. § 34-32-103(12); see also MLRB Regulations Section 1.1(43) (employing identical <br />language). The activities described in the Notice of Intent Modification, including the aquifer <br />pumping test, are precisely the type of activities defined as "Prospecting" activities in the statute <br />and regulations. In the case of in situ leach recovery operations, an essential part of "searching <br />for or investigating" the mineral deposit is determining the location, contours, and physical/ <br />geochemical characteristics of the aquifer and geologic substrata, because that information is <br />essential to a determination of the quantity of the mineral deposit as well as a determination <br />whether extraction of the minerals, as and where they are situated, is commercially viable. <br />Moreover, installation and operation of the aquifer pump testing well is necessary to "extract ... <br />samples prior to commencement of development or extraction operations." All of the activities <br />described in the Notice of Intent Modification are related to and necessary for achieving the <br />desired exploration objectives in an effective, safe and environmentally sound manner and in <br />accordance with applicable laws, regulations and industry standards, and thus fit firmly within <br />the definition of "Prospecting." <br />The Western Mining Action Project's claim that the aquifer pumping test is not <br />"Prospecting" but is instead "Development" is based on two fundamental misconceptions. First, <br />the proposed activities do not qualify as "Development" activities, which are defined in the <br />MLRA and regulations as: <br />The work performed in relation to a deposit, following the prospecting required to prove <br />minerals are in existence in commercial quantities but prior to production activities, and <br />aimed at, but not limited to, preparing the site for mining, defining further the ore deposit <br />by drilling or other means, conducting pilot plant operations, constructing roads or <br />ancillary facilities, and other related activities. <br />C.R.S. § 34-32-103(4). As discussed earlier, the work described in the Notice of Intent <br />Modification is work required to search for or investigate the mineral deposit; it is not work <br />intended to prepare the site for mining or in any other way to develop the potential mine. The <br />prospecting activities included in the Notice of Intent Modification simply do not qualify as <br />"Development" activities under the statutory definition. <br />Second, Section 5.1.1(2) of the MLRB Regulations requires DRMS to determine whether <br />an activity is "Prospecting" or "Mining," not whether the activity is "Prospecting" or <br />"Development." The real question, then, is whether the activities conducted under the Notice of <br />Intent are "Mining." The MLRA and MLRB Regulations typically tie the term "Development" <br />to "Extraction." Indeed, the MLRA defines "Mining Operations" as "the development or <br />extraction of a mineral." C.R.S. § 34-32-103(8). By definition, therefore, "Development" is <br />intended to describe the activities necessary for the imminent extraction of the mineral deposit. <br />None of the activities described in the Notice of Intent Modification is related to the <br />imminent extraction of the mineral deposit. Under Section 5.1.1(2) of the MLRB Regulations,
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