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Date: 5/2/2018 <br />COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />To: Ginny Brannon, Division Director <br />Jim Stark, Coal Program Director <br />From: Jason Musick <br />RE: Southfield Mine, Energy Fuels Coal, Inc., Permit No. C-1981-014 <br />Pattern of Violations and Recommendation for Show Case Order <br />This memorandum represents a recommendation for a show case order for Energy Fuels Coal, <br />Inc. (EFC) regarding the Southfield Mine (C-1981-014). The Division has determined that a <br />pattern of violations of the requirements of the Act, the Rules, and permit conditions required by <br />the Act exist and that the violations are caused by the unwarranted failure of EFC to comply with <br />the requirements of the Act, the Rules, or the permit conditions. EFC has failed to complete <br />reclamation of the Southfield Mine as required by the Act, the Rules, and the conditions of <br />permit no. C-1981-014. The Division currently holds a $10,000.00 cash/check as EFC's <br />performance bond for the Southfield Mine and, if forfeited, the $10,000.00 would enable the <br />Division to complete reclamation. Thus, the Division proposes to revoke the Southfield Mine <br />permit and forfeit the performance bond based on the violations by EFC as discussed below. <br />Background Information <br />To date, EFC has not completed the remaining reclamation obligations of the 1.45 acres under <br />the terms of the permit, the Act, and the Rules. Although all remaining reclamation has been <br />conducted at the site, the 10 -year liability period forestalls the final bond release and termination <br />of jurisdiction of the final 1.45 acres. Furthermore, in December of 2016 the Division was <br />informed by Mr. John Adams (former President of the former EFC) that EFC had been liquidated <br />and is no longer a viable company. Therefore, based on this information and on EFC's non- <br />compliance with the Act, the Rules and the permit conditions of C-1981-014, the Division issued <br />three Notice of Violations (NOVs) and three Cessation Orders (COs) associated with the NOVs. <br />The Division issued the three NOVs on May 15, 2017. The NOVs required EFC to abate the <br />violations on or before June 30, 2017. EFC failed to abate the violations by the deadline. EFC's <br />failure to abate continued for more than thirty days past the NOV and, to date, the violations <br />remain unabated. As a result of EFC's failure to abate the violations identified in the NOV, the <br />Division issued the three COs on July 12, 2017. Upon EFC's failure to abate the violations in <br />�4.0F C010� <br />0 . <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Robert Randall, Executive Director I Virginia Brannon, Director . 1R76 s <br />