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Page 2 <br />prospecting activities are Baseline Site Characterization. The substantive bases for that determination are <br />described as follows. <br />a. The Act at § 112.5(5)(a) requires inclusion of Baseline Site Characterization in applications for in <br />situ leach mining. Therefore, Baseline Site Characterization must necessarily be completed prior to <br />application submittal. <br />b. The Act at § 112.5(5)(a) states "(p)rior to submitting an application, the prospective applicant shall <br />confer with the (DRMS) concerning the baseline characterization and plan for ongoing monitoring of the <br />affected land and affected surface and ground water." Powertech has conferred with DRMS on several <br />occasions concerning Baseline Site Characterization; as a result of those conferences, Powertech <br />submitted the April 2009 Site Characterization Plan. The fact that Powertech is a self described <br />prospective applicant for an in situ leach mining operation in Colorado derives from numerous <br />documents Powertech has submitted to DRMS, including the April 2009 Site Characterization Plan, <br />which states in section 1.3 that "(t)his Plan was designed to thoroughly characterize the pre-mining site <br />conditions at the Centennial Project prior to Powertech's mining permit application." The April 2009 <br />Site Characterization Plan describes much of the work that Powertech has been doing at the Centennial <br />and Indian Springs Uranium Project under prospecting notices filed with the DRMS. <br />c. The Act at § 112.5(5)(b) states "(p)rior to submitting an application, a prospective applicant for in <br />situ leach mining shall design and conduct a scientifically defensible ground water, surface water, and <br />environmental baseline characterization..." The April 2009 Site Characterization Plan states in section <br />1.3 that "(i)t was developed in a manner that is consistent with applicable regulatory guidance, current <br />standards of practice, and defensible science." <br />d. The Act at § 112.5(5)(c) states "(t)he design and operation of the baseline characterization and <br />monitoring plan for in situ leach mining, together with all information collected in accordance with the <br />plan, shall be a matter of public record regardless of whether such activities are conducted pursuant to a <br />notice of intent to conduct prospecting operations under section 34-32-113." Therefore, it is clear that <br />Baseline Site Characterization can occur under the auspices of a prospecting notice and can be conducted <br />concurrently with, and as part of prospecting activities. In a letter from Powertech to DRMS dated <br />September 15, 2008 requesting modification to prospecting notice P-2008-043, Powertech describes the <br />intended use for seventeen ground water monitoring wells proposed to be installed as "for baseline <br />environmental data collection." In a letter from DRMS to Powertech regarding that same prospecting <br />notice and dated August 22, 2008, DRMS stated "(y)ou have chosen to keep the locations for the two <br />monitoring wells confidential with the rationale being that the monitoring wells are located over a <br />minerals deposit being prospected. Be advised that as a result of this choice, data gathered from these <br />wells may not be accepted as part of a baseline characterization and monitoring plan if a Reclamation <br />Permit application is submitted. This determination is in accordance with Section 34-32-112.5(5)(c) <br />C.R.S., which was added to Mined Land Reclamation Act through Colorado House Bill 2008-1161." In <br />response, Powertech stated in a letter dated August 25, 2008 "(h)aving reviewed your discussion of the <br />new requirements related to HB 2008-1161 and the determinations specified in your letter, Powertech <br />will waive its request that the locations of the two monitor wells be confidential." <br />e. The Act at § 112.5(5)(a) states "(t)he board or the (DRMS) may retain an independent third-party <br />professional expert to oversee baseline site characterization, monitor field operations, or review any <br />portion of the information collected, developed, or submitted by an applicant or prospective applicant <br />pursuant to this subsection (5)." The DRMS has notified Powertech in meetings and in writing that a