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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 C O L O R A D O <br />Phone: (303) 866-3567 DIVISION O F <br />RECLAMATION <br />FAX: (303) 832-8106 Lp?\\pp MINING <br />SAFETY <br />Bill Ritter, Jr. <br />P Governor <br />ckHarris D. Sherman <br />September 3, 2008 (R.c 5/ Executive Director <br />Ronald Cattany <br />Division Director <br />Mr. Fredrick Craft W. <br />rector <br />U. S. Energy Corp. Natural Resource Trustee <br />120 N. Blvd. <br />P.O. Box 629 <br />Gunnison, CO 81230 <br />RE: Notice of Intent to Conduct Prospecting Operations for Lucky Jack Project, File No. P-2008-052, Financial <br />Warranty Acceptance and Approval from DRMS to Commence Prospecting ? <br />Dear Mr. Craft: <br />The Division approved your Notices of Intent to Conduct Prospecting on August 25, 2008. Our letter indicated that <br />your notices were approved with the exception of an adequate financial warranty. On September 3, 2008, the Division <br />received and approved your One Site Prospecting Financial Warranty Check for Deposit in State Treasury No. 3354, in <br />the amount of $1,500.00, for File No. P-2008-052. <br />Therefore, final approval from the Division for your Notice of Intent to Conduct Prospecting at Lucky Jack <br />Project is hereby granted and you may commence operations at this site. However, if your operation is located <br />on Federal surface or is accessing Federal minerals, you will also need to obtain a permit from the Federal <br />government prior to commencement of operations. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 per site must be submitted on your <br />notice approval anniversary date for each year following the filing of an NOI until reclamation responsibility release <br />is granted. In addition, Rule 5.3.4 requires the prospector to notify the Division of completion of prospecting <br />operations and Rule 5.7 requires the submittal of a final report for drill holes within 60 days of completion of the <br />abandonment for artesian flow holes and within one year of completion of the abandonment for any other drill holes <br />(Form enclosed and also available on the DRMS website at If you have any questions, <br />please contact our office at (303) 866-3567. <br />Sincerely, <br />254d1AA <br />Elizabeth Taliaferro <br />Program Assistant II <br /> <br />Cc: Allen Sorenson, DRMS <br />Enclosure: Abandonment Hole Report Form <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction • Durango Active and Inactive Mines