MSB Global Capital Corp. (MSBM): As Requested... Hi Makes, further...

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JohnIraq

Re: makesumgravy post# 24750

Wednesday, 07/18/2007 2:44:34 PM

Wednesday, July 18, 2007 2:44:34 PM

As Requested...

Hi Makes,

further to your request for a document supporting the facts I presented yesterday, that an issue related to dewatering of the Rage Claims project did actually exist, I am happy to provide you with this letter from the Division of Oil, Gas and Minerals in Utah.

For the benefit of those who may not have been following this issue closely, I would like to explain the purpose of this letter, why it is in my possesion and in my opinion, what bearing, it may have on Russell Industries projected exploration of the Rage Claims if and when Federal and State Exploratory permits are issued.

This letter identifies specific items of a Deficient Notice of Intention to Conduct Exploration in respect to Russell Industries and the Rage Claims. This is normal business and nobody should have a knee jerk reaction over the fact that this letter was sent. It is quite simply a request for clarification or additional information of details contained within Russell Industries Notice of Intent to Conduct Exploration which was filed with the Division of Oil, Gas and Minerals on May 25th 2007 (State permit application, not Federal). The Division routinely suspended further review of the NOI on file until such time as an amended version, addressing the points raised by the division, was received. The amended notice was received on or around June 29th and the review continued.

Items 1,2 and 3 request additional information and clarification, but it is Item 4 which is of interest to us as it relates to the controversial issue at hand.

"The NOI says there is water in one of the adits that will have to be pumped out. This may require water sampling and a discharge permit from the Division of Water Quality. Please include information or correspondence from the Division of Water Quality showing that this requirement has been met or that a discharge permit is not required."

It appears that Russell Industries planned to pump the water from an adit (the definition of an adit is 'a type of entrance to an underground mining shaft which is horizontal or nearly horizonal') in order to access and explore the existing shaft it served, and were requested by the Division of Oil Gas and Minerals to show that they had taken the required steps to secure the necessary permit to pump out the water, or provide evidence that a permit was in fact not needed.

Unfortunately, the Rage Claims are located within the boundaries of a U.S. National Forest, this from the Division of Water Quality:

According to the State of Utah's Antidegradation Policy, the discharge of point sources of wastewater, treated or otherwise, into surface waters geographically located within the outer boundaries of U.S. National Forests whether on public or private lands is prohibited (UAC R317-2-12.1.a and UAC R317-8-3.2).

R317-2-12. High Quality Waters.
12.1 High Quality Waters - Category 1.

Suffice to say that not only is a permit needed, but the permit application process is extensive. My understanding is that the permit required was a UPDES (Utah Pollutant Discharge Elimination System) Permit from the Division of Water Quality.

As a result of the requirement to undertake this extensive application process, I have been informed by the Division of Oil, Gas and Minerals, that the amended Notice of Intent to Conduct Exploration by Russell Industries, Rage Claims, no longer includes the requirement to pump water from this adit.

I have known about the fact that an adit located within the Rage Claim area was water filled since May 11th. At that time, as a courtesy to Mr. Berman I contacted him to advise him that the Division of Oil Gas and Minerals were offering that information to anybody requesting an update on Russell Industries Exploratory Permit Application. I further stated that I would not discuss this issue on the board and until yesterday I had not. I have changed my mind because the issue has been raised by others and more importantly, Mr. Berman is now denying that dewatering was ever an issue (if Makes earlier post is an accurate reflection of Mr. Bermans opinion, that Mr Berman has addressed this issue with several people and that those presenting it are wrong, he has apparently now stated that "somebody who knowingly posts a falsehood is committing a fraud"... unfortunately it seems we cannot hold Mr.Berman to that same standard as he only posts his opinons in relation to this issue to selected Board participants by e-mail, and with the safety net of a confidentiality clause... how convenient...). I contacted the Division of Oil Gas and Minerals for confirmation that Russell Industries had been formally advised of the permitting requirements and this letter was sent to me by return.

Finally, what bearing does this issue have on the potential for exploration of the Rage Claims by Russell Industries...? I could care less that this adit is water filled to be honest, of course it would be great if they could explore the adit and shaft it serves, but a comprehensive drilling program is as important if not moreso to prove whatever reserves exist so the focus should be on putting an efficient plan of action in place that allows for drilling operations to begin as soon as possible if and when State and Federal Permits are issued.

That the information provided by State contradicts Mr. Bermans opinion of this, I dislike intently...

Cheers, J.

p.s. The letter is addressed to Mr. Nowak, who is the U.S. Forest official dealing with Russell Industries permit application, as this letter is a copy of his courtesty copy.