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STATE OF COLO~IIIIIIIIIIIIIIIIIII DIVISION OF MINERALS AND GEOLOGY DeUarlmenl of Natural Resources I J I J Sherman SL, Room 215 Denver, Colorado 90207 Phone (3031 866-356% FAX'. 13031632-NIUL September 3, 1997 Michael J. Markus City Planner City of Florence 300 West Main Street Florence, Colorado 81226 Re: Southfield Mine (Permit No. C-81-014) Phase I Bond Release Application (File No. SL-Ol) Deaz Mr. Markus: I~~~~ DEPARTMEfVT OF NATURAL RESOURCES Roy Romer Governor lames 5. Lochhead Eiecutrve Dveaor ^nlchael B. LOng Divrsron Director The Division has received your comments on the request from Energy Fuels Coal, Inc. (EFCI ), for Phase I bond release at the loadout facility. Your letter stated concerns over whether any contaminationofthe area had occurred as a result of the operation, and whether the area affects the future site of the Oak Creek Reservoir. You also noted that it appears structures still exist. in the abandoned right-of--way. EFCI has monitored surface water quality and quantity on Oak Creek downstream of the loadout facility since 1983, and will continue to do so until the end of a minimum ten year liability period on the reclaimed area. The liability period will extend at least through the spring of 2007. Monitoring data to date indicate that there has not been a negative impact on Oak Creek attributable to the loadout operation relative to the parameters measured. The description of probable hydrologic consequences, in the approved Southfield Mine permit application, predicts that there will be no impact from the loadout on Oak Creek. This information is available for review at the Division office, at the address above, and is on file at the Southfield Mine office. As noted above, the reclaimed loadout area is subject to a minimum ten year liability period during which the Division determines whether or not reclamation of the area has been successful. This determination is based on, among other things, the successful revegetation of disturbed areas and a determinationthat there have been no adverse impacts to the prevailing hydrologic balance. Your letter questions whether the loadout operation affects the future site of the Oak Creek Reservoir. Generally, with the exceptionof the possible conflict of the extended liability period, the Division does not envision a negative effect on the future site of the Oak Creek Reservoir. Should the City of Florence need to construct the reservoir prior to the end of liability period, EFCI could apply for a change in the postmining land use to accommodate the reservoir, and the liability period would no longer apply. If you would like a more detailed description of this process, please contact me.