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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS <br />Energy Fuels Coal, Inc. applied for partial Phase I, II, and III bond release under the Colorado Surface <br />Coal Mining and Reclamation Act following reclamation of the Southfield Mine. The mine is located <br />approximately seven miles southwest of the town of Florence in Fremont County, Colorado. The Mine <br />Area is in Township 20S, Range 69W of the 6th P.M. (portions of Sections 19, 30, and 31) and <br />Township 20S, Range 70W of the 6th P.M. (portions of Sections 23, 24, 25, 26, and 36). <br />Three previous bond release applications have been approved for the Southfield Mine. SL -01, which <br />entailed Phase I release of approximately 14 acres at the loadout, was approved on November 4, <br />1997. SL -02, Phase I for the mine site, was approved on April 25, 2003 and covered approximately <br />68 acres. SL -03 was approved March 28, 2016, and entailed 18.6 acres of Phase I and 101.7 acres of <br />Phase II and III. <br />An application for the SL -04 bond release was received by the Division on January 22, 2016. The <br />application was deemed complete on February 1, 2016, after the Division received proof of publication <br />of the applicant's public notice. Energy Fuels Coal, Inc. published notice of the bond release application <br />in Canon City Daily Record once weekly for four consecutive weeks. Publication dates included <br />December 22, 2015; December 29, 2015; January 5, 2016; and January 12, 2016. Energy Fuels Coal, <br />Inc. notified land owners within and adjacent to the mine permit area, local and state government <br />agencies, and other interested parties regarding the application for bond release, as required by Rule <br />3.03.2(1). <br />The Division scheduled and conducted a bond release inspection on February 24 and 25, 2016. The site <br />inspection was conducted in accordance with Rule 3.03.2(2). Attendees included: <br />• Rob Zuber, representing DRMS <br />• Al Weaver and Kent Gorham, representing EFCI <br />• Jack Robeda, representing the Warnock family and Las Cruces, LTD. <br />• Carin Corley, Daryl Mergen, and Dr. W.D. Corley of the Corley Company. <br />Other landowners were notified of the inspection via certified mail but did not attend. <br />On February 24t", with all of participants present, the inspection included: <br />• The replacement well to supply water to the Corley Ranch <br />• The road to well MW -65 and the well <br />• The fire area approximately three-quarters of a mile west of the Corley Ranch gate <br />• The mine ID sign post near the intersection of County Road 92 and County Road 15 <br />• Possible sources of sediment loading to Pond 5 and off site, including the haul road to the RDA <br />and the pipeline corridor from Pond 3 <br />• Magpie Creek Diversion ditch <br />• Portal area where old pipe segments were found <br />• Apparent subsidence features near the Newlin Creek topsoil stockpile site (SAE) <br />• Subsidence repairs near Thompson driveway (repaired in 2012). <br />Southfield Mine C-1981-014 Page 2 of 12 August 22, 2016 <br />SL -04 <br />