2012-11-30_PERMIT FILE - P2011012

• Permit No: P2011012
• IBM Index Class Name: PERMIT FILE
• Doc Date: 11/30/2012
• Doc Name: Reply
• From: rm potash
• To: DRMS
• Email Name: RCO
• Media Type: D
• Archive: No

cm potash
A subsidiary of Red Metal Limited [www redmetal corn au]
November 29, 2012
1 ' Bob Oswald
Colorado Division of Reclamation, Mining and Safety
1313 Sherman Street, Room 215
Denver, Colorado 80203
Re: Colorado potash Project NOI No. P -2011 -012
Dear Mr. Oswald,
3611 South Xenia Street
Denver, Colorado 80237
Phone [phone] Fax 720 - 420 -6515
RECEIVED
NM/ 3 0 2012
, DIVISION OF RECLAMATION
-
T 0 MINING AND SAFETY
I am in receipt of your letter of November 15, 2012, and am sending this reply o elaborate on
the items for which you asked clarification. I'll answer in the same number format used in
your letter:
1. "Temporary casing and well installation methods ". Through discussion with the
BLM personell we have proposed that two strings of casing will be used in the RM
Potash exploratory wells. Each well will be drilled to about 50 feet below the top of
the Chinle Formation with water -based mud (depth about 1200 to 1500 feet), at which
point a string of surface casing will be installed and cemented to suface. This surface
casing will remain permanently in place after the well is abandoned.
The drilling will advance to the top of the Paradox Formation with the water -based
mud system, depth about 5500 feet. At that point a string of temporary casing will be
installed, and cemented into place. That cement is planned to rise only about 150 feet
above the casing shoe so that the casing can be reclaimed after coring and testing is
completed.
After the temporary casing is set at the top of the Paradox Formation, the well will be
advanced by coring with an oil -based mud system to recover cores from the salt and
potash sections of the Paradox Formation to a depth anticipated to be between 6000
'and 6500 feet. The coring operation is anticipated to require about two to 4 weeks to
complete. Additional testing of the well bore, logging, and possible down -hole
seismic testing may take an additional two weeks, but will be conducted with the
temporary casing in place.
When coring, testing, and logging is complete, the well bore below the casing shoe of
the temporary casing, and the the inside of the temporary casing, will be cleaned with
water containing a surfactant to remove as much as possible of the oil -based mud. The
water - surfactant -oil based mud used cleaning solution will be hualed off -site and
disposed at an appropriate facility. After cleaning of the temporary casing, the casing
will be cut as close above the cement as possible, and the temporary casing will be
recovered for re -use or recycling. We anticipate the cleaning and removal of the
temporary casing to be completed in 2 to 5 days.