Permit File - 8/5/2008, 3:18:55 PM-SW1

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