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999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, C0~80203 <br />Phone: 1307) 866-3567 <br />FAX: (3031 832-8106 <br />October 12, 1993 <br />Mr. Clint L. Strachan, P.E. <br />Water, Waste & Land, Inc. <br />2629 Redwing Road, Suite 200 <br />Fort Collins, Colorado 80526 <br />Re: Request for Proposal - Battle Mountain Gold Oversight <br />Dear Mr. Strachan; <br />p° Oro <br />ti~ 4 <br />!~ <br />~ re ]6 ~ <br />Roy Romer <br />Governor <br />Michael R. Long <br />Division Director <br />On behalf of the Division of Minerals and Geology (DMCv), I would <br />like to invite Waste, Water & Land, Inc. (WWL) to submit a letter <br />of proposal, including work unit cost schedule, to provide Third <br />Party oversight services for DMG at the Battle Mountain Gold San <br />Luis Project. Battle Mountain Gold (BMG) recently commenced the <br />construction of an upstream embankment raise and the installation <br />of additional tailings pond liner at the San Luis mine site. While <br />performing a recent inspection, the Division determined that both <br />of these construction efforts are employing materials not in <br />accordance with specifications in the approved plans. This <br />situation is the subject of on-going negotiations between BMG and <br />the Division. <br />Battle Mountain Resources, Inc. (BMRI), parent of BMG, has agreed <br />to employ a third party to provide intensive oversight services to <br />the Division. Similar to a continuing third party water quality <br />monitoring effort, for which WWL submitted a proposal last fall, <br />this oversight effort will be paid for by HMRI, while the work <br />effort is supervised by the Division. WWL, BMRI ands DMG would <br />execute a three party contract, with an attached Scope-of-Work, <br />which would articulate the parties' working relationeh.ip. <br />Time is of the essence. BMG has completed the first t:en feet of <br />the thirty foot upstream embankment raise. In addition, <br />approximately 50~ of the compacted clay underliner and fabric liner <br />have been installed by the contractor. Construction has been <br />suspended by BMG. However, BMG wishes to complete construction <br />before ground and weather conditions interrupt progress. <br />