2012-07-09_REVISION - M1977300

• Permit No: M1977300
• IBM Index Class Name: REVISION
• Doc Date: 7/9/2012
• Doc Name: TR-19 - INITIATION OF ACTIVITIES
• From: COTTER
• To: DRMS
• Type & Sequence: TR19
• Email Name: TAK
• Media Type: D
• Archive: No

Carter RECEIVED
JUL 03 20 i
Via E -Mail and U.S. Mail Division of Reclamation,
Mining & Safety
July 6, 2012
Mr. Tom Kaldenbach
Division of Reclamation, Mining & Safety
1313 Sherman Street, Rm 215
Denver, CO 80203
Re: Schwartzwalder Mine, Permit No. M- 1977 -300
Technical Revision 19 - Initiation of Activities
Dear Mr. Kaldenbach:
On January 9, 2012, Cotter Corporation (N.S.L.) (Cotter) received a letter from the Division of
Reclamation, Mining and Safety (DRMS) concerning the installation of new bedrock
groundwater monitoring wells. The January 9, 2012 letter directed Cotter to install the wells
after submitting a Technical Revision (TR) request. Subsequent to the January 9, 2012 letter,
Cotter proposed and DRMS approved an extensive geophysical and hydrophysical logging
program in TR -19 in order to maximize the recovery of technical information from each
borehole.
Cotter submitted the TR request on March 9, 2012 followed by DRMS acceptance of the TR on
April 9, 2012, with the proviso that "[t)he revision will not be final until the bond is approved by
the Division." Cotter hand delivered the bond to DRMS on June 24, 2012 and has not yet
received notice that the bond has been approved. Cotter has accomplished the following in
connection with TR -19:
• April 2012 — Whetstone Associates prepared a Request for Proposal (RFP) for rev4ew,
with a list of potential drilling contractors.
• May 9 - May 14, 2012 — The RFP was submitted to five drilling contractors, follow -up
calls were made, and a pre -bid meeting was scheduled.
• May 25, 2012 — Four drilling contractors attended the pre -bid meeting. Two of the four
contractors flew in from New Mexico and Utah.
• June 8, 2012 — Bids were received from two contractors, Layne Christensen Company
(Layne) and James Drilling Company. The other two contractors declined to bid.
• June 20, 2012 — A second site visit with Layne was made to discuss and evaluate access,
drill pad size and mobilization costs.
• June 21, 2012 — Layne submitted its revised bid.
• June 25, 2012 — Cotter submitted the $687,326 bond to DRMS for monitoring wells.
• June 25, 2012 — Whetstone sent the formal evaluation of drilling bids to Cotter.
• June 29, 2012 — The verbal award of the contract to Layne was made.
Cotter Corporation Telephone [phone]
Canon City Mill, P.O. Box 1750, Canon City, CO 81215 -1750 USA Fax [phone]