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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY v' <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 C O L O RA D O <br />Phone: (303) 866-3567 4illt+ ??? ?t!?r l'?F I! 'I'a) ? DIVISION O F <br />FAX: (303) 832-8106 RECLAMATION <br />MINING <br />SAFETY <br />DATE: July 16, 2010 ?? <br />Bill Ritter, Jr. <br />Governor <br />TO: Mike King, Executive Director, DNR L° <br />Mike King <br />S Executive Director <br />FROM: Allen Sorenson Loretta E. Pirieda <br />Director <br />RE: Brief on Powertech's modifications MD-02, MD-03, and MD-04 <br />to Prospecting Notice of Intent No. P-2008-043 <br />Powertech (USA) Inc. filed modification MD-02 to their Prospecting Notice P-2008-043 on March 4, 2009. <br />MD-02 had proposed a surface infiltration/evaporation pit for disposal of water to be produced during an <br />aquifer pump test. State Representative Randy Fischer expressed interest in modification MD-02, and then <br />Director Ron Cattany committed the Division of Reclamation, Mining, and Safety (DRMS) to keep <br />Representative Fischer advised of the status of MD-02. On September 2, 2009, MD-02 was withdrawn <br />from consideration by Powertech and modification MD-03 was submitted. MD-03 proposed temporary <br />surface storage in tanks followed by underground injection of ground water pumped from a monitoring <br />well for the purpose of aquifer testing. On September 16, 2009, DRMS advised Representative Fischer of <br />these developments via memorandum sent by both regular and email, also asking that he notify DRMS if <br />he wanted continued updates on MD-03. DRMS did not hear back from Representative Fischer following <br />the issuance of the September 16, 2009 memo. A copy of that memo is enclosed. DRMS has not, as of this <br />date, issued authorization to proceed under MD-03. Powertech must post $63,670.00 to gain DRMS <br />authorization. Powertech must also obtain an Underground Injection Control Permit from the U.S. <br />Environmental Protection Agency (EPA) to proceed with the MD-03 activities; DRMS and EPA have <br />coordinated our respective reviews of Powertech's underground injection proposal. As of this date, the <br />EPA permit has not been issued. ` <br />Powertech (USA) Inc. filed modification MD-04 to their Prospecting Notice P-2008-043 on June 23, 2010. <br />MD-04 was for the laying of 1500 feet of two inch polyethylene tubing from the pump test well to a <br />headwaters tributary of Spring Creek, located northwest of Nunn in Weld County. The tubing is to be used <br />to transport water produced during pump testing to the creek where it will be discharged in conformance <br />with Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board, Rule 3.1.6(1)(a and <br />b), which states: <br />(1) Hydrology and Water Quality: Disturbances to the prevailing hydrologic balance of the affected <br />land and of the surrounding area and to the quantity or quality of water in surface and groundwater <br />systems both during and after the mining operation and during reclamation shall be minimized by <br />measures, including, but not limited to: <br />(a) compliance with applicable Colorado water laws and regulations governing injury to existing <br />water rights; <br />(b) compliance with applicable federal and Colorado water quality laws and regulations, including <br />statewide water quality standards and site-specific classifications and standards adopted by the <br />Water Quality Control Commission. <br />Office of <br />Mined Land Reclamation Office <br />Denver Grand )unction Durango Active and Inactive Mines