2015-10-13_REVISION - C1981014 (4)

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Energy Fuels Coal Inc. Application for Bond Release — October 2015 Mining operations at the Loadout resulted in disturbance of approximately 17.7 acres. Of this, approximately 0.7 acres are not reclaimed that are associated with the approved permanent facilities. This bond release application (SL -03) is a combination of Phase I, Phase II, and Phase III. While there is no formal definition of what constitutes the terms "Phase I, Phase II, and Phase IIP', the Guideline Regarding Selected Coal Mine Bond Release Issues, Colorado Division of Minerals and Geology, April 18, 1995, links the meaning of these terms to specific Rule requirements. Phase I bond release is more specifically defined by Rule 3.03.1(2)(a) which allows " up to sixty percent of the applicable bond amount shall be released when the permittee successfully completes backfilling, regrading, and drainage control in accordance with the approved reclamation plan;" This application (SL -03) requests Phase I bond release for a number of permanent ponds and other small areas that were not considered for a Phase I bond release through previous bond release permitting actions. It also requests a Phase II and Phase III release of the aforementioned Phase I areas and for those areas previously Phase I released as a result of bond release SL -01(1997) and SL -02(2003). Phase II bond release is more specifically defined by Rule 3.03.1(2)(b), which allows "up to eighty-five percent of the applicable bond amount shall be released upon the establishment of vegetation which supports the approved postmining land use and which meets the approved success standard for cover, pursuant to 4.15.8, meets applicable productivity standards for prime farmlands or alluvial valley floors pursuant to 3.03.1(3)(b), or croplands pursuant to 4.15.9. With the exception of prime farmlands, evaluation of vegetation establishment pursuant to this paragraph is based on statistically valid data collected during a single year of the liability period;" Rule 3.03.1(3)(b) also limits the regulatory authority to only releasing bond up to the Phase I limit of 60% until the lands to which the release is applicable contribute sediment in an amount equal to or less than premining levels as compared to adjacent non -mined areas. In this application, EFCI is requesting a Phase II bond release for 102 acres under the bonded liability at the Southfield Mine Site and the entirety of the ancillary Loadout Area and has included topsoil resource data, vegetation monitoring data specific (to cover and species composition), and sediment demonstrations as required by the rules cited above. Phase III bond release is more specifically defined by Rule 3.03.1(2)(c), which allows "the remaining portion of the bond amount shall be released when the permittee has successfully completed all surface coal mining reclamation operations in accordance with this approved reclamation plan, and the final inspection and procedures of 3.03.2 have been satisfied. This shall not be before the expiration of the period specified for revegetation responsibility in 3.02.3." In this application, EFCI is requesting a Phase III bond release for 102 acres under the bonded liability at the Southfield Mine Site and the entirety of the ancillary Loadout Area. As mentioned above, two previous bond release applications were submitted by EFCI and approved by the Division. Both of these applications were for a Phase I bond release. Surety Release No. 1 (SL -01) was approved on November 4, 1997 and documented by the written findings titled "Proposed Decision and Findings of Compliance for the Southfield Mine, Permit No. C-1981-014, Loadout Area, Phase I Bond Release ". This bond release granted a Phase I release of 14.5 acres at the Southfield coal loadout area. Surety Release No. 2 (SL -02) was approved on April 25, 2003 and documented by the written findings titled "Findings of Compliance and Proposed Decision for a Phase I Bond Release and Bond Reduction SL -02 for Energy Fuels Coal, Inc, Southfield Mine, Permit No. C-1981-014 ". This bond release granted a Phase I release of 68.6 acres at the Southfield facility area and the refuse disposal area. Surety Release No. 3 (SL -03) Southfield Mine