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SAN JUAN BASIN ImFmAiLmLIA D E P A R T M E N T November 10, 2008 Mike Clements, Wildcat Mining Corporation 3643 Baker Street San Diego, CA 92117 Re: Stormwater Permit Requirements for Construction Activities/Compliance Advisory Access/haul road to Idaho Mine and mill site 4434 County Road 124 La Plata County Dear Mr. Clements: It has come to our attention that you are engaged in a construction activity that is included under the stormwater regulations. The San Juan Basin Health Department conducted an inspection of the above- referenced construction activity on November 3 & 4, 2008. A report documenting the inspection is attached. We have no record that you have applied for or obtained a Construction stormwater permit for the above-referenced project. In 1987, the US Congress amended the Clean Water Act to expressly include stormwater discharges from industrial and construction sites as requiring Clean Water Act controls. In 1990, EPA issued regulations that require specific industrial and construction activities to obtain permits in order to discharge stormwater from their facilities. Construction sites that have one or more acres of ground disturbed, or are part of a larger common plan of development or sale that disturbs an acre or more of ground over a period of time, are specifically included. Coverage of construction sites under a stormwater permit is required from the time that ground is broken, until the site has been finally stabilized, that is, when all soil disturbing activities at the site have been completed, and a uniform vegetative cover or the equivalent has been established. The Water Quality Control Division (the Division) of the Colorado Department of Public Health and Environment has direction and authority to administer the stormwater permit program in Colorado. Since the above-referenced site involves the disturbance of one or more acres of ground (for the entire project), a Stormwater Construction Permit certification is required. A copy of the application form was provided at the time of inspection and has been enclosed for your use. (The form is also available on the web at www.cdphe.state.co.us/wq/PermitsUnit.) The application should have been completed and submitted prior to breaking ground. Since activities have already begun, the application should be submitted to Colorado Department of Public Health and Environment, WQCD-P-B2, 4300 Cherry Creek Drive South, Denver, CO 80246-1530, Attn: Matt Czahor, no later than December 5, 2008. 281 Sawyer Drive - P.O. Box 140 - Durango, CO 81302 - (970) 247-5702 - Fax (970) 247-9126