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STATE OF COLORADO <br />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 25, 2008 "NON CONFIDENTIAL <br /> <br /> <br />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Mr. Fred Craft <br />U.S. Energy Corp. <br />P.O. Box 629 <br />Gunnison, CO 81230 <br />RE. Lucky Jack Project, Receipt of Notice of Intent, File No. P-2008-052 <br />Dear Mr. Craft: <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has received your Notice of Intent to Conduct <br />Prospecting. Our initial review indicates that it is complete. Financial Warranty must be provided in the amount of <br />$1500.00 per the reclamation cost estimate enclosed with this letter. Prospecting bond forms are available online at <br />hLtp:// You may not commence prospecting operations until the bond has <br />been submitted and you have been notified in writing that the bond has been accepted by the DRMS. <br />DRMS recognizes that this prospecting notice for installation of a weather station anticipates collection of information <br />to support applications for permits if and when the Lucky Jack Project moves past the prospecting phase. The weather <br />exhibit for an application for a Colorado Reclamation Permit for a Designated Mining Operation is critical to DRMS <br />review of such an application. In addition to temperature, wind, and precipitation data, evaporation information is <br />necessary to evaluate water balance for mining and milling operations. If you have any questions about the types of <br />data needed to support a permit application, please contact me at 303-866-4063. <br />Sincerely--n <br />Allen C. Sorenson <br />Reclamation Specialist <br />enclosure(s) <br />cc: Elizabeth Shelton, DRMS (via email and w/o enclosures) <br />c:\acs ftles\My Documents 4-19-06 thru\lucky jack receipt of aug 08 NOI.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • DuranRo Active and Inactive Mines