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STATE OF COLO[LSDO <br />DIVISION OF RECLAMATION, MINING AND SAFETY .v~ <br />Department of Natural Resources <br />1313 Sherman St., Room 215 /~ <br />Denver, Colorado 80203 w <br />C O L O R A D O <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br /> <br />July 22, 2008 '~/ '" ~n ~ ~~~ D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />Bifl Ritter, )r. <br />Mr. Richard Blubaugh Governor <br />Powertech (USA) Inc. '~~ Harris D. Sherman <br />5575 DTC Parkway, Suite 140 Executive Director <br />Greenwood Village, CO 80111 Ronald w. cattany <br />Division Director <br />' ~ Natural Resource Trus[ee <br />RE: Centennial Project, Receipt of Notice of Intent, File No. P-2008-043 ~ <br />Dear Mr. Blubaugh: a ~~~~ <br />The Colorado Division of Reclamation, Mining, and Safety (DBMS) has received your Notice of Intent to <br />Conduct Prospecting (NO]7. Our initial review indicates that it is incomplete. Please address the following <br />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 DBMS may terminate this NOI (rule 5.1.3 of the Mineral Rules and <br />Regulations of the Mined Land Reclamation Board). <br />Section III, item 6 of the NOI indicates that the proposed drill holes maybe up to 12 inches in diameter, It is <br />subsequently stated that the proposed exploration boreholes will be 6.5 inches and the proposed monitoring <br />well holes will be 8.75 inches in diameter. The DBMS has used the specific smaller diameters for the <br />purpose of estimating borehole plugging and abandonment costs (see enclosed cost estimate spreadsheets). If <br />you want the flexibility to drill holes up to 12 inches diameter, you must notify the DBMS so that plugging <br />and abandonment costs can be re-estimated and the correct amount for the reclamation bond can be <br />established. <br />DBMS has implemented changes to the Mined Land Reclamation Act relative to confidentiality of NOIs <br />since Senate Bi112008-228 (SB-228) was enacted on June 2, 2008. Until rule making for SB-228 is <br />complete, it is anticipated that there will be some difficulties trying to tailor pre-SB-228 forms and <br />procedures to the new law. One of these affects section N, item 2 of your NOI requiring you to provide a <br />description of the native vegetation in the areas to be disturbed by prospecting activities. DBMS recognizes <br />that the NOI form states that you are allowed to use color photographs in lieu of written descriptions, and that <br />you have provided color photographs (as well as a general written description) in the confidential section of <br />the NOI. DBMS further recognizes that the color photographs can be designated confidential as they may <br />disclose proposed drilling and thus mineral deposit location information. However, vegetation description <br />information may not be confidential under the terms of SB-228. Therefore, you must either provide <br />photographs that can be part of the public NOI file or a written description of the vegetation, or a <br />combination of both. Be advised that the photographs and general vegetation description that have thus far <br />been provided in the confidential portion of the NOI are insufficient. In your forthcoming submittal, please <br />provide photos and/or descriptions of tree shrub and grass communities that identify plant species in the <br />affected areas. This will facilitate review of your proposed revegetation plan. You may wish to contact the <br />Natural Resource Conservation Service and/or the local Soil Conservation District for assistance with the <br />plant descriptions. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango A~t;~,P ,,,,t ,„,,.,;,,o ~,,;„o~ <br />