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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 />September 25, 2009 <br />Mr. Richard Blubaugh <br />Powertech (USA) Inc. <br />5575 DTC Parkway, Suite 140 <br />Greenwood Village, CO 80111 <br />1,00K CONFlOo-P.W8AL <br /> <br />COLORADO <br />D I V I S 10 N O F <br />RECLAMATION <br />MINING <br />SAFETY <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 />? L? <br />RE: Centennial Project, Receipt of Notice of Intent Modification MD-03, File No. P-2008-043 <br />Dear Mr. Blubaugh: <br />On September 3, 2009, the Colorado Division of Reclamation, Mining, and Safety (DRMS) received <br />Powertech's proposed modification MD-03 to Notice of Intent to Conduct Prospecting P-2008-043. DRMS <br />initial review indicates that it is incomplete. Please address the following items at your earliest convenience <br />bearing in mind that if you have not addressed these items within sixty days of the date of this letter the <br />DRMS may terminate consideration of the proposed modification (Rule 5.1.3 of the Mineral Rules and <br />Regulations of the Mined Land Reclamation Board). <br />1. MD-03 proposes temporary storage of ground water pumped to the surface in Baker tanks and states that <br />the tanks will be decontaminated before and after use. Piping from the pumping/injection well to the tanks is <br />to be installed on the ground. Does BakerCorp provide any certification or other assurance that the tanks and <br />water contacting appurtenances, as delivered and set up are suitable for potable water storage? If so, provide <br />documentation and describe the nature of the certification or assurance. If not, provide a plan for testing the <br />tanks and appurtenances to demonstrate that they will not be a source of contamination. Similar <br />demonstration or certification of cleanliness must be provided for appurtenances, if any, that are provided by <br />sources other than BakerCorp, e.g., manifolds, valves, transfer pump. DRMS will further require that the <br />piping to be installed be new and be National Sanitation Foundation or otherwise certified for potable water. <br />2. Provide details on the specific type(s) of Baker tank(s) to be deployed. If uncovered tanks will be used, <br />describe how contaminant concentration increase through evaporation and dust fall will be mitigated prior to <br />injection and how access by birds and small terrestrial wildlife will be prevented. <br />3. MD-03 states that the pump test water will "most likely" be injected into the same well from which it is <br />extracted. DRMS will require that all injection wells be specified in MD-03; there will be no latitude to use <br />wells for injection that have not been specifically approved by DRMS for that purpose. At this time, the only <br />potential injection well identified in MD-03 is well IN08-33-PW1. <br />4. DRMS requires the submittal of mechanical integrity test results, electrical resistivity logs, and well <br />completion reports for all injection wells. MD-03 states that these documents can be made available prior to <br />commencement of injection, which is unacceptable. DRMS must accept the adequacy of information <br />contained in these documents in writing prior to initiation of the pump test proposed in MD-03. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines