2014-04-30_GENERAL DOCUMENTS - C1981014 ‎(3)‎

• Permit No: C1981014
• IBM Index Class Name: General Documents
• Doc Date: 4/30/2014
• Doc Name: Letter to David Berry and Copies to Other Staff
• From: Daniel Hernandez
• To: Jeff Fugate & Other Parties
• Permit Index Doc Type: General Correspondence
• Email Name: DIH
• Media Type: D
• Archive: No

6/16/2014 State.co.us Daecutive Branch Mail - Fwd: letter to Dave Berry and copied to other staff-
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Fwd: letter to Dave Berry and copied to other staff -
Hernandez - DNR, Daniel <daniel.hemandez @state.co.us> Wed, Apr 30, 2014 at 1:17 PM
To: Jeff Fugate <Jeff.Fugate @state.co.us>
Cc: David Berry - DNR <david.beny @state.co.us >, Rob Zuber - DNR <rob.zuber @state.co.us >, Janet Binns - DNR
<janet.binns @state.co.us >, Mike Boulay - DNR <mike.boulay @state.co.us>
Hi Jeff —
Per Dave Berry's request, I'm replying to your 4/23/14 e-mail to Dave regarding K2T and that entity's relationship
relative to the matter of NOV CV2013002, issued on 1/28/13 to Energy Fuels Coal Inc (EFCI), permittee of the
Southfield Mine. Thanks go to Rob Zuber and Janet Binns for some of the following research.
Regarding your questions pertaining to "the corporate structure of K2T as it relates to standing and their ability to
intervene in the NOV and request a hearing before the Board" and "who has been designated the
agent /representative of K27, our responses are divided into three sections: (1) K2Ts corporate structure; (2)
K2Ts designated agent /representative; and (3) K2Ts ability to intervene in the NOV and request a hearing before
the Board. I have also included a couple of pertinent comments under section (4) Additional comments.
(1) K2T's Corporate Structure:
• K2T (also known in the Southfield permit as "K2T, LLC ") is an entity that according to information in the
Southfield permit owns surface and mineral interests within the permit area of the Southfield Mine.
Map 1 (attached) of the Southfield permit indicates that land ( "S" for "surface ") and minerals ( "C" for
"coal ") in portions of Sections 19 and 30 of T20S, Range 69W, 6th PM are owned by "Vento Group ". In
the Southfield permit, "K2T' is listed as one of three entities identified under "Vento interests" in the
"Surface Ownership" section of the permit (page 2.03 -18) and as one of three entities identified under
"Vento interests" in the "Mineral Ownership" section of the permit (page 2.03.20).
• K2T is also an entity that according to information in the the Southfield permit has leased its surface and
mineral interests to EFCI.
Page 2.03 -30 of the Southfield permit indicates that "K2T, LLC ", along with the other two entities listed
under "Vento interests" elsewhere in the permit, entered into a "Coal Mining Lease" with Energy Fuels
Associates Ltd on March 20, 2000. Page 2.03 -38 of the Southfield permit indicates that an "Operating
Agreement dated March 22, 1985 [exists] between Energy Fuels Associates, Ltd as owner and EFCI as
operator, authorizing EFCI to conduct coal mining activities on all of the above described lands ".
• The corporate structure of K2T /K2T LLC is unknown at this time.
Colorado's Coal Act at 34- 33- 110(2)(c) requires the names and addresses of the principals, officers and
resident agent of all legal owners of record of the surface property and mineral property to be mined IF said
property owners are "business entities other than a single proprietor" (similar language does not exist in
the Board's Regulations; however, Rule 3.03.2(2) requires DRMS to give notice of bond release
inspections to "the surface owner and agent or lessee "). The corporate structure of K2T 1K2T LLC, as a
single proprietorship or otherwise, is not identified in the Southfield permit.
An e -mail from Linda Saunders to DRMS dated 4/10/14 states:
"From: K2T LLC, Linda Saunders manager and owner and Tena Gallagher, owner'.
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