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DRMS, MD-02 <br />April 14, 2009 <br />Response to DRMS Regarding the March 20, 2009 Weld Countv Letter <br />The following comments are provided in response to Weld County's letter of March 20, 2009 <br />to the Division of Reclamation, Mining and Safety. <br />1. Installation of baseline groundwater monitoring wells will be performed in <br />compliance with the environmental and aquifer protection requirements of the U.S. <br />Environmental Protection Agency (EPA) and the Colorado Division of Water Resources, <br />Office of the State Engineer (CDWR-OSE). <br />2. Any and all exploration boreholes drilled by Powertech will be correctly abandoned <br />following logging and sampling so as to provide protection to aquifers in the area. The <br />disposal of cuttings and disturbed soils will comply with the environmental and aquifer <br />protection requirements of the EPA and the CDWR-OSE. <br />3. The specific location of the water disposal pit was given in Attachment A as <br />Northing: 531,812.85 and Easting: 2,168,436.70 (NAD-27 CO-N), and is off-channel from <br />the tributary to Spring Creek. Nevertheless, we have changed the proposal to contain all of <br />the water in steel tanks and to return the water back into the same aquifer. <br />4. Powertech provided to DRMS the information that was requested. At the time the <br />Request for Modification was prepared, it was not deemed necessary to provide the <br />information specified in the Weld County letter as our experience and technical expertise <br />resulted in the conclusion that there would not be any impact to the Laramie aquifer. We are <br />focused on the process that is required by DRMS at this point in time and do not believe that <br />the DRMS process legally requires local authority approval for this activity. However, we <br />are cognizant of the issues that have been raised by the County and will work to address <br />those issues in a separate meeting with the County. Powertech is interested in meeting with <br />the Weld County representatives to discuss permitting of this proposed activity particularly <br />because we believe there is some misunderstanding or misinformation. We will, of course, <br />strive to address any concerns the County may have and make sure that we meet periodically <br />with the County so that accurate information is exchanged. <br />5. The letter stated that the County Departments believe that Powertech has not <br />provided adequate information for DRMS approval. While Powertech provided the <br />information required by DRMS, and believed it to be sufficient, we are sensitive to Weld <br />County's concerns about certain aspects of the pump test as proposed in MD-02. In order to <br />simplify matters, Powertech is withdrawing its proposal to dispose of the water in an unlined <br />pit for the pumping test. Instead, Powertech, will transport Baker tanks to the site and pump <br />the water into the tanks. The water will be pumped back into the aquifer from which it came, <br />resulting in minimal environmental impact. This method will alleviate any concerns about <br />contamination of the Laramie aquifer and potential users down gradient from the pumping <br />test location. With this modification, Powertech believes the four bulleted information items <br />in the letter are adequately addressed. As stated in the Weld County letter, "Construction of a <br />lined evaporation pond or tanks would provide the necessary storage for the water pumped <br />from the ore zone and provide protection to the underlying shallow aquifers."