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DIVISION OF RECLAMATION, MINING AND SAFETY 7/ STATE OF COLORADO <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 />March 4, 2010 I,? <br />Mr. Richard Blubaugh <br />0 Powertech (USA) Inc. <br />5575 DTC Parkway, Suite 140 <br />Greenwood Village, CO 80111 <br />(COLORADO <br />DIVISION OF <br />g CONFITIAL RECLAMATION <br />Vi® MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />( James B. MB. Martin <br />Executive Director <br />RE:. Centennial Project, Third Review of Notice of Intent Modification MD-03, File No. P-2008-043 <br />Dear Mr. Blubaugh: <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has reviewed Powertech's submittal dated <br />February 2, 2010 responding to DRMS second review of proposed modification MD-03 to Notice of Intent to Conduct <br />Prospecting P-2008-043, and has determined that there are several issues remaining to be addressed. Please respond to <br />the following items at your earliest convenience bearing in mind that if you have not addressed these items within sixty <br />days of the date of this letter the DRMS may terminate consideration of the proposed modification (Rule 5.1.3 of the <br />Mineral Rules and Regulations of the Mined Land Reclamation Board). <br />The initial submittal of MD-03 received by DRMS on September 2, 2009 and the subsequent submittals from <br />Powertech dated October 28, 2009 and February 2, 2010 describe a number of actions to be taken to ensure that the <br />tanks deployed to the pump test site will be suitable for storage and subsequent injection of ground water pumped from <br />well IN08-33-PW1. DRMS has determined that reporting and verification procedures are not sufficiently described; <br />please commit to completion of the following actions prior to deployment of the tanks. <br />1. Powertech's October 28, 2009 submittal states: <br />All cleaning and inspection procedures outlined in the Powertech Produced Water Vessel Cleaning and <br />Inspection Procedure will be adhered to and will be certified as complete before water containment vessels <br />are brought on the site. All manifolds valves and transfer pumps will be cleaned as described in the <br />attached procedure. Additionally piping will be new and National Sanitation Foundation or otherwise <br />certified for potable water. <br />Provide a commitment to provision to DRMS of the certifications described in the preceding statement and a <br />commitment that the tanks will not be used to store produced ground water until after the certifications have been <br />accepted by DRMS in writing. <br />2. Powertech's October 28, 2009 submittal states "(i)nitially natural background radiation levels shall be <br />measured and recorded" at the pump test site, and that "(r)adiological measurements using an alpha and gamma probe <br />shall be conducted on the containment vessel before it is utilized onsite and, again, after onsite use; all readings will be <br />documented on the appropriate Powertech form." Provide a commitment to provision to DRMS of the results of these <br />required radiological measurements and a commitment that the tanks will not be used to store produced ground water <br />until after the results have been accepted by DRMS in writing. Provide a commitment to notify DRMS in advance of <br />the schedule for collecting the radiological measurements, as DRMS may opt to inspect and audit the procedures. <br />3. Powertech's February 2, 2010 submittal states "Rain for Rent keeps a detailed history of the previous contents <br />of tanks. The water holding tanks to be used by Powertech and provided by Rain for Rent will have been previously <br />used to contain water only, at least back one tank use event." Provide a commitment to provision to DRMS of Rain for <br />Rent's detailed history of the previous contents of tanks, at least back one tank use event, and a commitment that the <br />Office of <br />Mined Land Reclamation Denver Grand Junction Durango Office of <br />Active and Inactive Mines