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vo7-6REGULATORY PERMITS MANAGEMENT, INC. <br />7425 Winter Berry Ln., Castle Rock, Colorado 80108 <br />RECEIVED <br />Phone: (303) 854-7499 ° FAX: (303) 660-3852 <br />August 18, 2008 AUG 2 0 2006 <br />Mr. Tony Waldron <br />Div. of Rec. Mining and Safety <br />RM 215 <br />1313 Sherman St. <br />Denver, CO 80203 <br />RE: /Clarification of 4th Adequacy Questions <br />Dear Mr. Waldron: <br />i Division of Reclamation <br />Iii Mining and Safety , <br />WN CONFIDENTIAL <br />On August 18, 2008 I met with you and Mr. David Bird at the Franklin Mine Site. While there we <br />looked at the closures that COAG Corporation installed on the Freighter's Friend and Franklin Mine <br />Shafts. We also discussed the fourth adequacy questions letter recently sent to me and COAG <br />Corporation concerning the NOI that COAG Corporation has submitted. Following are the <br />clarifications we reached agreement on during our discussions at the Franklin Mine Site. <br />• The spring/seep surface survey shall be confined to the limits 'of the ridges both side of the valley <br />and shall extend one mile down gradient. Any springs or seeps located shall be indicated on a <br />USGS topo map. A hand held GPS location shall be sufficient. <br />• Mine water sampling may be performed during bulk sampling within the mine workings and will <br />not be required prior to NOI issuance. <br />• A more detailed description of where bulk sampling will occur shall be provided. A regional <br />description as in such and such level and within such and such drift will be sufficient. <br />• To the best COAG Corporation's knowledge, where standing water is and where any inflows <br />may be. (During bulk sampling this information will be supplied as they become available. We <br />did not discuss the reporting period; COAG Corporation will supply all hydrologic information <br />on the anniversary date of its NOI acceptance by the DRMS.) <br />• To the extent available, cross section(s) and aerial section(s) showing the extent of underground <br />workings shall be provide. (Of concern to the DRMS is any COAG Corporation's activities that <br />may causes flow or increase of flow or connection of waters from the Franklin Mine into <br />adjacent workings and there-by find its way to the ARGO Tunnel.) <br />• That the DRMS wants COAG Corporation to sample the mine water pool during bulk sampling, <br />if such sampling can be done safely.