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George V. Patterson, Energy Fuels Coal, Inc. <br />Page 4 <br />February 12, 2015 <br />more detailed information may now be considered desirable, the subject was addressed at the time the <br />mine was permitted: <br />"Given the lenticular nature of the Vermejo Formation, there is a potential for occurrence of <br />small perched groundwater reservoirs where favorable lithologic and recharge characteristics <br />exist. Any such reservoirs which exist are expected to be limited in size and areal extent. Given <br />the uncertainties relative to the capacity and location of perched groundwater reservoirs, <br />beneficial use is unlikely and has not been attempted to date" (page 2.04.7 -4). <br />The empirical evidence of the drill logs is summarized by text on pages 2.04.6 -8 to -9: <br />"The only significant subsurface water encountered within the strata to be affected by current and <br />proposed mining activities is associated with abandoned mine workings. <br />Numerous perched groundwater reservoirs have been encountered throughout the Raton and <br />Vermejo Formations. Perched groundwater has been found in various locations and at varying <br />elevations throughout the permit area. <br />Perched groundwater reservoirs appear to be limited in areal extent and storage capacity, <br />generally producing temporary flows of less than 5gpm when intercepted by drilling." <br />The Division finds no reason to refute the conclusions made at the time the mine was permitted: the <br />potential hydrogeologic effects of the Southfield Mine disturbance are restricted to an interval <br />bounded by the roof of the Vento seam above, and the floor of the Red Arrow seam below; and the <br />groundwater resources within this interval are limited in extent. <br />