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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 />October 13, 2011 <br />Dear Mr. Winters, <br />Project Description <br />1.) Please explain how much water (gallons) will be used to process a week's worth of test holes? <br />2.) Please explain the recycling and filtering process discussed for the water used in the spiral concentrator. <br />Financial Warranty <br />3.) The Division has estimated the cost of reclamation of the site to be $2,268.23. This includes what it would cost <br />the Division to backfill one year's worth of test holes. The Operator must submit the required Financial Warranty <br />and obtain Division approval prior to conducting prospecting operations. <br />Please be advised the Bear Hug NOI application may be deemed inadequate, and the application may be denied on <br />November 14, 2011 unless the above - mentioned review items are addressed to the satisfaction of the Division. If <br />you feel more time is needed to complete your reply, the Division can grant an extension to the decision date. This <br />will be done upon receipt of a written waiver of your right to a decision by November 14, 2011 and request for <br />additional time. This must be received no later than the deadline date. <br />Please do not hesitate to contact me if you have questions, I can be reached at (303) 866 -3567 ext. 8120. <br />Sincerely, <br />ared Ebert <br />Environmental Protection Specialist, DRMS <br />CC: Tony Waldron, DRMS <br />Tom Kaldenbach, DRMS <br />Trent Hyatt, Clear Creek County. <br />Holly Huyck, Upper Clear Creek Watershed Association <br />Office of <br />Mined Land Reclamation <br />Terry Winters <br />1558 Spring Gulch Road <br />P.O. Box 178 <br />Idaho Springs, Colorado 80452 <br />STATE OF COLORADO <br />RE: Bear Hug Notice of Intent to Conduct Prospecting Operations (NOI) Application, File No. <br />P- 2011 -028; Review #2 <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division has reviewed your response to the first review of the Bear Hug NOI Application (P- 2011 -028). There <br />are several items that must be clarified prior to approval by the Division. Please address the following items: <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />