SOW_Firstgold_Bore_Holes.pdf

STATEMENT OF WORK

FIRST GOLD BOREHOLE ABANDONMENT PROJECT

HUMBOLDT COUNTY, NEVADA

UNITED STATES DEPARMENT OF INTERIOR

BUREAU OF LAND MANAGEMENT

WINNEMUCCA DISTRICT OFFICE

HUMBOLDT RIVER FIELD OFFICE

STATEMENT OF WORK DESCRIPTION:

This Statement of Work (SOW) describes the First Gold borehole abandonment requirements of the Bureau of Land Management (BLM), Humboldt River Field Office

(HRFO). The project site included in this SOW is entirely located in Humboldt County, Nevada (within Section 10, of T. 37 N., R. 40 E., MDBM).

BLM HRFO requires the abandonment of 2 exploration boreholes at the First Gold project site (Figures 1 and 2). The boreholes (Images #1-4) are adjacently located approximately 298 feet apart on an abandoned exploration Notice acknowledged by BLM

HRFO on May 15, 2008. Specific details and descriptions of the boreholes are discussed in the Services Required section. UTM coordinates are provided in WGS84 datum.

The Contractor shall be responsible for furnishing all equipment, material, and labor necessary to perform the services described in this SOW. Project work will be performed under the direction of the BLM Contract Officer (CO) and as delegated through the

Contract Officer Representative/Project Inspector (COR/PI). All presented quantities and calculations herein are estimations and are presented solely for informational purposes.

Presented quantities shall not be used as the basis for bidding. Contractors shall be responsible for developing their own quantities as well as verifying any and all discussed field conditions.

SITE CONDITIONS & ACCESS:

The project site is entirely located on public land. Access is via paved, improved graded, and dirt roads. The site is characterized by moderately flat terrain composed of low-lying desert shrub and bunchgrasses. Elevation ranges from 4,478 to 4,480 feet above mean sea level. Climate is semi-arid, typically receiving less than 9 inches of precipitation annually. There are no sanitary facilities, potable/non-potable water sources, or power available at the site. Cellular and 4G phones generally receive service in the vicinity of the project area, however, coverage can become spotty and unreliable.

The First Gold project site can be accessed from Winnemucca, Nevada:

• Follow the eastbound ramp of Interstate 80 at Exit 178 on E. 2nd St.

• Travel 15.5 miles east on Interstate 80 to Exit 194 (Golconda/Midas).

• Take Exit 194, at end of ramp, turn left on SR 790 (Morrison Ave).

• Drive ¼ mile to intersection of SR 789 (Old Highway 40 E).

• Drive straight (north) through intersection and travel 0.48 miles to RR crossing.

• Cross tracks (north) and take first left-hand turn on Stanford St.

• Follow Stanford St. northwest for 0.36 mile and turn right on Eden Valley Rd.

• Follow Eden Valley Rd. for 1.46 miles to bridge crossing on Humboldt River.

• At the bridge crossing, road transitions from a paved to an improved graded road.

• Continue to follow Eden Valley Rd north to northeast for 9.2 miles to the intersection of Dutch Flat Rd.

• Continue straight on Eden Valley Rd. (northeast) through intersection and travel

0.82 mile to dirt road turn-off on the left-hand side of road.

• Turn left, follow dirt road northeast for 530 feet (ft.) to next road intersection.

• Turn left at intersection and drive northwest approximately ½ mile to access boreholes. The boreholes are located approximately 298 feet apart at the coordinates listed below. Each borehole is easily accessible from the access road.

o Borehole #1 is located at approximately 11N 0461451 4549420.

o Borehole #2 is located at approximately 11N 0461516 4549357.

SITE RESTRICTIONS:

Contractor activity shall be confined to areas that are immediately deemed necessary for the facilitation of borehole abandonment. All Contractor derived litter shall be picked-up daily and placed in containers for disposal. When reclamation is complete, the Contractor shall remove all litter, debris, and unused materials or supplies brought onto the site by the Contractor and/or subcontractors.

The personal safety of Contractor employees is of the utmost importance. Contractor shall take all reasonable actions necessary to perform the work in a safe manner at all times. The Contractor shall provide all Personal Protective Equipment for its employees including as a minimum a U.S. Department of Labor Occupational Safety and Health

Administration approved hard hat, safety glasses, safety vests, work gloves, and steel toed boots. Visitors to the site must wear a hard hat, safety glasses, and steel toed boots.

The contractor shall also conduct daily tailgate safety meetings with the work crew.

The Contractor shall be responsible for having a spill prevention and clean-up plan. Any oil, noxious fluids, fuels, or chemicals spilled onto the ground shall be cleaned up immediately. After clean-up, oil, noxious fluids, fuels, or chemicals and any contaminated material shall be removed from the site and disposed of at an approved disposal facility.

Burning of trash and other debris is not authorized without specific permits from BLM and other appropriate agencies. Any wildland fire observed should be reported immediately to the BLM Central Nevada Interagency Dispatch Center 24-hour Fire Line at (775) 623-3444 or 1-800-535-6076. Vehicle catalytic converters should be inspected often and cleaned of all flammable debris. All cutting/welding torch use, electric-arc welding, and grinding operations should be conducted in an area free, or mostly free, from vegetation. An ample water supply and shovel should be on hand to extinguish any fires created from sparks. At least one person in addition to the cutter/welder/grinder should be at the work site to promptly detect fires created by sparks.

In order to eliminate the transport of vehicle-borne noxious weed seeds, roots, or rhizomes, BLM recommends that all vehicles and heavy machinery used for the completion, maintenance, inspection, or monitoring of reclamation, for emergency fire suppression, or for authorized off-road driving within the project area, should be free of soil and debris that is capable of transporting weeds. Prior to entering the project site, BLM recommends that all vehicles and machinery should be cleaned with a high-pressure water sprayer.

The Migratory Bird Treaty Act prohibits the destruction of nests of migratory birds. In order to avoid potential impacts to breeding migratory birds, a careful visual inspection of habitat in the project area should be made prior to any surface disturbance during the avian breeding season (March 1st through August 31st). Nesting activities may include eggs or young present in nest, and adult behavioral displays (e.g. dive-bombing, faking injury, won’t leave the area, agitated calling, etc.). If active nests are located, they should be avoided by an appropriate distance and the BLM CO/COR/PI should be notified immediately.

If cultural or paleontological resources, including but not limited to historic ruins, historic mine workings, historic trash dumps, prehistoric artifacts and fossils, are discovered during reclamation, the resources shall be left intact and immediately brought to the attention of the BLM CO/COR/PI. Additionally, pursuant to 43 CFR 10.4(g) the

Contractor must notify the BLM CO/COR/PI, by telephone and with written confirmation, immediately upon the discovery of human remains, funerary items, sacred objects, or objects of cultural patrimony.

SERVICES REQUIRED:

Table 1. Services Required

TASK

DESCRIPTION

1 Submit work plan and schedule to BLM CO/COR/PI.

2 Schedule preconstruction meeting with BLM CO/COR/PI.

3 Plug 2 boreholes in accordance with NAC 434.4371.

4 Final project walk-through and BLM sign-off.

5 Submit final project report to BLM.

Task #1: Within 60 days of contract award, Contractor must submit a work plan and schedule. Work plan should include all tasks described in the Services Required section.

Work schedule should conform with the timeframes outlined on Table 3, p. 4.

Task #2: Within 60 days of contract award, Contractor must schedule virtual, phone conference, or in-person preconstruction meeting with BLM CO/COR/PI.

Task #3: Within 120 days of contract award, Contractor shall commence with plugging of Borehole #1 and #2. Plugging of boreholes must be performed in accordance with

State of Nevada Revised Statues Chapter 534 and State of Nevada Administrative

Code (NAC) Section 534. Specific plugging direction is found under NAC 534.4371, can be located at www.leg.state.nv.us/NAC/NAC-534.html. Contractor must also cut, remove, and dispose of above ground casing at each borehole.

Table 2: Borehole parameters Borehole #1 Borehole #2 Boring angle from ground surface 60° 60°

Casing Material Steel Steel

Casing outside diameter 4.5 inches 6.75 inches

Height of casing above ground 8-12 inches 1-5 inches

Depth of boring from lowest casing edge 98.167 ft. 3.75 ft.

Depth of boring from vertical 85.015 ft. 3.247 ft.

Depth to groundwater from lowest casing edge 29.167 ft. No groundwater

Depth to groundwater from vertical from lowest casing edge 25.259 ft. Not applicable

Depth to groundwater from vertical from surface 24.592 ft. Not applicable

Additional comments

Boring in silty alluvium and lacustrine deposits;

boring may be deeper, caved.

Appears to be only a surface casing.

Task #4: Within 10 months of contract award, Contractor shall complete final project walk-through and receive BLM sign-off. Contractor must provide BLM COR/PI an advance, 5-day notice of their intent to schedule a final project walk-through. Final walk-through will evaluate effectiveness and quality of work performed. If BLM COR/PI find any deficient or incomplete work, the Contractor shall be responsible for the completion of deficient task item(s) before commencing with Task #5.

Task #5: Within 60 days of completing borehole abandonment, Contractor shall submit final report to BLM CO/COR. Final report should include a summary (per task item) of all work performed under the contract. Provide the names of the Contractor and subcontractors per task, and dates/hours of work.

If any of the contract tasks required troubleshooting or took additional time to complete, the Contractor shall describe these conditions in the report and discuss what measures (if any) were taken to correct the issue. Contractor must supply BLM CO/COR with a hard copy of the final report and electronic file(s) containing the final report in Microsoft

Word. Final payment will not be made until the final report is approved by the BLM. It is expected that the Contractor will complete the services required within the timeframes outlined in Table 3 below.

Table 3. Contract Timeframes

TASK

TIMEFRAME

Submit construction plan and tentative work schedule. Within 60 days of award date

Commence on-the-ground activities. Within 120 days of award date

Final project walk-through with BLM COR/PI. Within 10 months of award date

Submit project final report to BLM CO/COR. Within 60 days of completing project http://www.leg.state.nv.us/NAC/NAC-534.html

CONTRACTOR SITE VISIT:

Prior to submitting a bid for work, contractors are encouraged to visit and investigate the project site to confirm and become familiar with the location and conditions which will affect borehole abandonment activities.

If requested, the BLM COR/PI will schedule and coordinate a project site walk-through prior to the close of bidding. All interested contractors should confirm their walk-through request with the BLM COR/PI no later than two weeks prior to close of bidding.

Depending upon interest, one pre-bid project tour date may be set for all interested bidders.

If awarded a contract, the Contractor is responsible for attending a pre-construction meeting and site visit with BLM COR/PI to determine site-specific details prior to commencing on-the-ground activities. The Contractor will coordinate all work with the

BLM COR/PI (Nate Pepe, BLM Nevada State Office, 775-861-6766).

CONTRACT STIPULATIONS:

Prior to, and during all phases of borehole abandonment, Contractor is responsible for complying with contract stipulations, and all applicable federal, state and local laws and regulations. The Contractor is also responsible for obtaining all appropriate federal, state, & local authorizations and permits.

Project site safety is the sole responsibility of the Contractor, who shall also be solely responsible for the means, methods, and sequencing of reclamation. Under no circumstances should the information provided within this SOW be interpreted to mean that BLM is assigning responsibility for project site safety or the Contractors activities.

Such responsibility is not being implied and shall not be inferred.

Contractor shall respect all private and public property. Any disturbed property or section corners are to be reset (at the Contractor’s expense) by a professional land surveyor licensed in the State of Nevada.

When differing site conditions are encountered, the Contractor shall promptly, and before the conditions are disturbed, give written notice to the Contracting Officer of –

1) Subsurface or latent physical conditions at the site which differ materially from those indicated in this SOW; or

2) Unknown physical conditions at the site, of an unusual nature, which differ materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in this SOW.

INSTRUCTIONS:

Contractor should provide a bid for the lump sum amount to perform Tasks #1 through

#5 described in the Services Required section and outlined on Table 1, pg. 3.

SITE PHOTOGRAPHS:

Image #1: Northwesterly view of borehole #1.

Image #2: East-southeasterly view of borehole #1

Image #3: Southerly view of borehole #2.

Image#4: East-southeasterly view of borehole #2.