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energy fuels coal, inc. wNh11a10 mins • poet ofllu lqx 41B • Ilorsnes, eolonCO 81728 • (718) 781388 June 6, 1997 Mr. James B. McArdle Assessment Conference Officer DiVrsron of Minerals and Geology 1313 Sherman St., Room 215 Denver, Colorado 80203 Dear Mr. McArdle: RECEIVEn JUN 1 1 1997 Diviswn of MiInMP Is ~ Geology III IIIIIIIIIIIII III 999 This letter is written to advise you that Energy Fuels, Inc. ("EFCI") has elected not to execute the Settlement Agreement for NOV CV-97-002. While we appreciate the opportunity to participate in the Assessment Conference, we do not agree with the Settlement~Agreement Justification as presented to us. As we presented at the Assessment Conference, EFCI believes that the penalty for the NOV is significantly overstated based on the history leading up to this NOV and the admitted lack of any risk of any damage to the public or the environment. His~tor The NOV was issued on March 17, 1997. This was after the submittal by EFCI of a Technical Revision on the subject of the NOV in January of 1997. We acknowledge that the TR was found to be incomplete by the Drvision. We were working on the additional information requested by the Division when the NOV was written. The abatement for this NOV did not require any change by the Operator rn its construction procedures --- rather, it required completion of the TR process which we were working on. This history alone warrants a lesser penalty. Lack of Risk. The Division itself admits that there was no risk to the public or environment associated with the situation giving rise to this NOV. The CiV~l Penalty Assessment prepared for this NOV identifies that the section of the regulations at issue is designed to ensure a "stable" refuse pile. EFCI demonstrated, before the NOV was written, that the pile exceeded the 1.5 factor of safety require y Ru e 9.10. ( 1 Further, the Civil Penalty Assessment itself admits that not only was there no actual risk of any damage to the public or the environment, there was not even the potential for risk of any damage. As referenced at the Assessment Conference, this set of circumstances does not justify a penalty of $1,000.00. We understand that by not executing the Settlement Agreement, the Notice of Proposed Civil Penalty of $1,000.00, dated April 15, 1997 will remain rn place. Sincerely, ~ ~_~ ~~"'~j"-Zcs~ e orge V. Patterson General Mine Manager GVP/nrl CC: Al Weaver - EFCI