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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman SL, Room 215 C O L O RA D O <br />Denver, Colorado 80203 DIVISION O F <br />Phone: 1303) 8663567 MINERAL S <br /> <br />FA%: (303) 832-8106 G E O L O G Y <br /> AEGEAN ATION•NINING <br /> EAFETY•SCIFNC++ <br />September 24, 2005 <br /> Bill Owens <br />James Iuppa Governor <br />33651 Lake View Drive Russell ceorse <br />Trinidad CO 81082-8764 Ezecutive Director <br /> Ronaltl W. Canany <br /> <br />Re: Bond Release Application No. 5 (SL-OS) Division Director <br />Natural Resource Trustee <br />Raton Creek Mine (Permit No. C-1982-055) <br />Dear Mr. Iuppa: <br />On September 12, 2005, the Division of Minerals and Geology (Division) received your letter dated September <br />9, 2005 regarding specific issues related to the Phase IUII[ bond release application currently under review for <br />the Raton Creek Mine. We understand from your letter that you did not specifically request an informal <br />conference but did identify a number of on-the-ground issues that you believe should be addressed by Energy <br />Fuels Coal Inc prior to a final liability release. As you are aware, an inspection was conducted with you on <br />September 21, 2005 with representatives of the Division and EFCI in attendance. The inspection resulted in a <br />Division inspection report dated September 21, 2005, which you will find enclosed. [n addition to the enclosed <br />report, we would Tike to provide specific response to each of your concerns. <br />The Rules and Regulations governing coal mining require reclamation bonds to be held by the Division for a <br />minimum period often years after reseeding of the reclaimed areas. This year's growing season completed this <br />ten year period, at which time the operator is eligible to request a final bond release and, if successful, marks <br />the completion of all obligations and liability under their coal mining permit. During the reclamation liability <br />period, reclamation plans are implemented, and modified in some cases, not only to satisfy the requirements of <br />the Regulations but considering the needs and desires of the landowner. As you know, the Division and EFCI <br />worked in close cooperation with the landowners, Albert Iuppa and Marilyn Iuppa, and you, to incorporate your <br />wishes and desires into the reclamation plan when possible. Addendum E of the approved permit contains a <br />number of letters describing structures and facilities that the landowners desired to remain as permanent <br />features for their benefit. During the reclamation liability period, it was the Division's understanding that the <br />landowner desired to eliminate and expedite EFCI's liability and the Division regulatory authority over lands <br />owned by you as soon as possible. As we approach the potential end of this period, we appreciate your patience <br />and thank you for your cooperation as we all work towards this goal. <br />The Division would like to specifically address each of the issues as outlined in your letter. 1 will organize my <br />responses in the order as presented in your letter. Included in your letter were numerous photographs taken <br />during and shortly after a recent storm event. <br />As [mentioned at the beginning of the bond release inspection, these four ponds are not included in the <br />disturbance associated with the mining permit. The Division has no regulatory authority over these ponds and <br />cannot consider this issue as part of the bond release. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />