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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />27 December 2010 <br /> <br />Mr. Richard Blubaugh <br />_Powertech (USA) Inc. <br />5575 DTC Parkway, Suite 140 <br />Greenwood Village, CO 80111 <br />Ill? -44M <br />` COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr, <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. PiMeda <br />Director <br />Re: Addendum to Fourth Adequacy Review for Modification MD-03, Centennial Project Aquifer <br />Test, Powertech (USA) Inc., File No. P-2008-043 <br />Dear Mr. Blubaugh: <br />New developments surrounding the aquifer pumping test proposed by Powertech (USA) Inc. (Powertech) <br />have forced the Colorado Division of Reclamation, Mining and Safety (Division) to revisit the Modification <br />MD-03 to Notice of intent to Conduct Prospecting P-2008-043. The UIC Class V injection permit granted <br />to Powertech (USA) Inc. by the U.S. Environmental Protection Agency (EPA) for the Centennial Project <br />contains some provisions that evoke additional adequacy concerns under MD-03. The Division therefore <br />provides this Addendum to the Fourth Adequacy Review of MD-03. Please incorporate into your reply to <br />the Division's Fourth Adequacy Review appropriate responses to the issues presented herein. Your reply <br />must be received no later than the decision deadline of 11 Feb 2011, bearing in mind that the Division will <br />require some time to process the response and perform calculations regarding additional financial warranty. <br />The U1C Class V injection permit granted to Powertech by the EPA for the aquifer pumping test specifies <br />water quality criteria that must be met before re-injection will be allowed to proceed. This introduces the <br />concept of an "alternative water disposal plan", which might be necessary if the water to be re-injected does <br />not meet the EPA's water quality criteria. <br />As received by the Colorado Division of Reclamation, Mining and Safety (Division), Modification MD-03 <br />contains no provision or financial warranty for an alternative water disposal plan. As discussed during our <br />meeting of 20 December 2010, of the possible alternative disposal options available, Powertech will choose <br />the option of on-site water treatment and surface discharge. Therefore, Powertech must include in its <br />pending Fourth Review Response a sufficiently detailed plan that describes the water treatment and surface <br />water discharge procedures. The plan must include at a minimum the following: <br />1) Schedule for all aspects of the treatment and discharge, including mobilization, demobilization, hours of <br />operation, personnel required, and timing of project termination, bearing in mind that multiple <br />treatment circuits may be required to address the various constituents of concern. <br />2) Details and schedule for any ground preparation needed to provide access and a level surface on which <br />to place the portable treatment facility, including timing of mobilization and demobilization. <br />3) Procedures and schedule for sampling and analysis of the water to be discharged. <br />4) Procedures and schedule for transport and disposal of treatment sludge. <br />5) Documentation and reporting procedures. <br />6) Spill mitigation and reporting procedures. J1 <br />Office of <br />Mined Land Reclamation <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines