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Page 2 of 3 <br />10. The Corley Company Well (Division of Water Resources Permit No. 119459) is located <br />in Township 20 South, Range 70 West, NE' /4 SE' /4 Section 24. The total depth of the <br />well is 100 feet and has been permitted for domestic use, livestock watering by the <br />Colorado Division of Water Resources. The Division of Water Resources Permit was <br />approved February 19, 1982. Southfield's Map 12: "Mine Area Surface and <br />Groundwater Hydrology" locates the Corley Company Well in NE' /4 NW1 /4 Section 24, <br />Township 20 South, Range 70 West. Please correct the location on the Southfield mine <br />maps. (Resolved - Map 12 was adequately updated with MR60.) <br />The owner of the well believes the well has failed. The Corley Company Well (No. <br />119459) overlies an area that was mined by Energy Fuels. This location shows that <br />Energy Fuels conducted secondary mining (pillared) below this location in the Red <br />Arrow Seam in 2nd North mining area (Map 17: Mine Plan (dated December <br />1,1997), and MSHA Final Workings Map (dated June 20, 2002). Please demonstrate <br />that Energy Fuels Coal Inc. has met the requirements of Rule 4.05.15 and Rule <br />4.20.3 regarding the Corley Company Well. The Corley Company Well was <br />reportedly finished in the Raton Formation and produced approximately 1 gallon <br />per minute according to the baseline information in the PAP. <br />11. Exhibit 8 provides records of drill logs for resource confirmation holes (exploration <br />holes within the permit area) approved in the Southfield Permit. Abandonment <br />reports have been located for Drill holes SF85 -03, SF85 -08, SF85 -14. These drill holes <br />were released under SR -1. Other holes permitted during MR7, MR8, and MRll were <br />released during the approval of SRI as well. <br />In permit section 2.05.4, EFCI commits to conducting a field reconnaissance to <br />document the status of exploration and drill holes. In permit sections 2.05.4 EFCI <br />commits to and 4.07 and sealing drilled holes in accordance with Rule 4.07. The <br />Division approved liability release for 51 holes that were not drilled along with 4 <br />reclaimed drill holes (SRI). <br />Final disposition of drill holes that are the responsibility of EFCI was noted during the <br />MT5 review in 2007 (MR55 letter from EFCI to the Division, dated October 4, 2007). <br />As the majority of the reclaimed areas within the Southfield permit are approaching <br />the minimum liability timeframe, please conduct a field reconnaissance in accordance <br />with EFCI's permit commitment and provide abandonment reports for all sealed <br />boreholes, Rule 4.07.3(3). <br />Water monitoring boreholes in the approved water monitoring plan should not be <br />sealed prior to Division approval. Attached to this review is a list of drill holes located <br />in the field by the Division. Please provide any updates to this list as appropriate. <br />(EFCI submitted MR61 and stated that EFCI won't do an inventory or seal holes until they <br />are ready for final bond release. EFCI stated in the MR61 cover letter that Exhibit 8 has <br />been updated. Exhibit 8 was not submitted with the MR61 materials. Furthermore, waiting <br />for final bond release is inconsistent with the Act and Rule 4.13.) <br />