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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 />August 24, 2011 <br />Jon P. Thorson <br />RM Potash <br />5515 Nuthatch Road <br />Parker, CO 80134 <br />Dear Mr. Thorson, <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />7 <br />`I J <br />7 ' �r <br />tiU .0 <br />Re: Colorado Potash Project, NOI File No. P -2011 -012, Second Technical Adequacy Review Letter. <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pitteda <br />Director <br />On August 15, 2011 the Division received the responses to the June 21, 2011 adequacy letter, concerning the NOI <br />application named above. Your letter arrived prior to the 60 -day deadline stated in our letter to you. It appears that <br />most of the issues identified earlier have been satisfactorily addressed and are no longer considered deficiencies to <br />the NOI. I still have a couple items which merit clarification, which are listed below. Please respond to each item. <br />1. Affected acreage: The affected acreage was originally stated in the NOI to be 2.00 acres, which the Division <br />considers to be too low, even if only three of the drill pads and appurtenant roads are included in the affected <br />acreage. Your response letter referred back to the BLM scoping document, in which a figure of 5.3 acres is <br />presented. It is unclear, however, if that 5.3 -acre figure is what you are revising the affected acreage to in the <br />NOI application to the Division. Please clarify. If no clarification or revised figure is received from you, the <br />Division will interpret this to mean that the figure should be revised to 5.3 acres. <br />2. Groundwater protection: The plan states that the drilling operation may encounter groundwater, and that it <br />may consist of more than one aquifer. The narrative information provided concerning placement of cement <br />plugs to isolate and protect the aquifers was a bit unclear and did not appear to comport perfectly with the <br />information shown in the plugging diagram. Are the plugs to be placed 50 feet above and 50 feet below each <br />aquifer, or continuously throughout and beyond the column where the aquifer is? Additionally, the narrative <br />does not make clear how the lower limit of each plug will be supported, as there is no information <br />concerning mechanical plugging device or backfill of cuttings. Please provide more information. <br />3. Diesel -based mud and Reclamation: The NOI states that the diesel -based mud to be used in the project will <br />be pre -mixed and delivered by the manufacturer, and stored in dedicated tanks onsite. An estimate of the <br />likely amount needed in each borehole was provided, and an extra amount will be available onsite if needed, <br />up to 15,000 gallons per drill hole. Recovery of the used diesel mud, while imperfect, was nevertheless <br />estimated to be high (97 -99 %). In order to maximize the removal of diesel mud residue from the hole, this <br />office will require the additional measures of flushing and use of surfactants. The details of recovery rate <br />and clean -up practices will be required in the drill hole permanent abandonment reports. <br />4. Reclamation cost: The supplier of the mud will be contracted to remove the mud from the site and properly <br />dispose of it. As you know, this office must hold a financial warranty (bond) throughout the life of the <br />project, in an amount adequate to perform the necessary reclamation, in the case of an operator not <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />