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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY f/ <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 />July 21, 2008 <br />(, e- 5 '--, <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Mr. Richard Blubaugh <br />Powertech (USA) Inc. <br />5575 DTC Parkway, Suite 140 <br />Greenwood Village, CO 80111 <br />NON CONFIDENTIAL <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 />RE. Centennial Project, Receipt of Notice of Intent-Con idential Portions, File No. P-2008-043 ?----- <br />Dear Mr. Blubaugh: <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has received your Notice of Intent to <br />Conduct Prospecting (NOI). 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 DRMS may terminate this NOI (rule 5. 1.3 of the Mineral Rules and <br />Regulations of the Mined Land Reclamation Board). <br />DRMS has implemented changes to the Mined Land Reclamation Act relative to confidentiality of NOIs <br />since Senate Bill 2008-228 (SB-228) was enacted on June 2, 2008. This letter addresses the portions of the <br />NOI held confidential under SB-228; you will also receive a review letter for the public portion of the NOI. <br />You have placed the details of the proposed ground water monitoring wells in the confidential section of the <br />NOI. Please provide your reasoning and rationale, in terms of SB-228, for excluding this information from <br />the public record. Regardless of whether or not the monitoring well information will remain confidential or <br />will become public, DRMS will require submittal for review and approval of standard operating procedures <br />(SOPs) for monitoring well construction and completion. It is anticipated that the monitoring wells proposed <br />in the NOI will be used to collect ground water information to support a reclamation permit application if <br />Powertech determines that the mineral deposit is an ore body. Idorder to properly collect information that <br />will be acceptable to DRMS if an application were to be forthcoming, you should provide, for review and <br />approval, SOPs for sampling the wells and analyzing the samples. DRMS recognizes that you have <br />previously provided the SOPs discussed in this paragraph, but this NOI must be a stand-alone document, <br />particularly given the statutory changes in SB-228 that have occurred since submittal of Powertech's other <br />NOI filed with DRMS. <br />At the time this letter is being written, DRMS is in receipt of various emailed SOPs. The email was sent by <br />Powertech's Michael Beshore following a teleconference held July 21, 2008 in which he was informed of the <br />basic content of this confidential section review letter and the public review letter sent under separate cover. <br />DRMS has not yet reviewed the emailed SOPs, and asks that hard copies also be sent under a cover letter <br />with an authorized Powertech signature. If the hard copy SOPS differ in any way from the emailed SOPs, <br />please state so in the cover letter, as DRMS hopes to streamline the ongoing review of the NO[ by beginning <br />the review of the emailed documents. Bear in mind that depending on your responses to this and to the public <br />review letter sent under separate cover, information relating to the ground water monitoring wells may <br />become public. If you believe that any portions of the SOPs may be held confidential under SB-228, then <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Arr1„u -+