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energy fuels coal, inc. kt <br />southfield mine • post office box 459 • florence, colorado 81226 • (719) 784-6395 <br />January 31, 2016 RE: <br />Mr. Rob Zuber, P.E., Environmental Reclamation Specialist FLJ U `'' k, I j <br />Division of Reclamation, Mining, and Safety DIViSIG',A!,AATION <br />1313 Sherman ST, Room. 215 MINING AND IWETY <br />Denver, CO 80203 <br />Re: Response to Bond Release Application No. 3 (SL -03) Adequacy Review <br />Adequacy Question #9 — Magpie Spring <br />Southfield Mine (Permit No. C-1981-014) <br />Dear Mr. Zuber: <br />Energy Fuels Coal Inc. (EFCI) has reviewed your adequacy review questions in your letters dated <br />December 18, 2015 and January 8, 2016 concerning Bond Release Request No. 03 (SL -03). This letter <br />and its attachments are intended to provide a response to Question #9, stated as follows in the first <br />letter: <br />9. Regarding the developed spring in Magpie Diversion, the Division is awaiting laboratory <br />results to determine if the water meets agricultural standards. The results of the laboratory <br />analysis will inform the discussion of whether or not EFCI should reclaim this structure. <br />RESPONSE: <br />Subsequent to the December adequacy review letter, the Division sampled the developed spring. After <br />receiving the laboratory data, the Division issued a letter dated January 14, 2016, stating that they "did <br />not identify any exceedances of the agricultural standards in Regulation 31 ". Although the spring <br />water meets Ag standards, the Division has yet to issue a decision about reclaiming the spring structure. <br />Although EFCI believes that the developed spring can remain based on its quality, we have decided to <br />remove the developed spring area from the SL -03 application. This area is calculated to be <br />approximately 0.3 acres. In the attached revised application text, we reduced the requested Phase II <br />and III acres for bond release from 102 to 101.7, and the area excluded from Phase II and III bond <br />release is changed from 4.3 to 4.6 acres. A revised Exhibit K Acreage Table is attached showing the <br />0.3 acres for the Magpie Spring Structure area. <br />The attached SL -03 Bond Release Map was revised to show the Phase II and Phase III bond release <br />area shading removed for the 0.3 acres surrounding the spring structure. This area encompasses the <br />spring location, including approximately 50' upstream, and the full length of the subsurface pipe <br />underlying the rip -rap channel of Magpie Diversion. According to a GPS survey, the location of the <br />spring is approximately 150 feet from the inlet to the GEC road culvert. <br />