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09/29/2004 16:53 7197844352 EFCI PAGE 02 caNO . N.o. v. Ne. c.aoa-ona energy fuels coal, inc. ~ soul~Neld mine poet eMlee Ao~ a89 florenee, e0loredo 81228 (719) 7848798 September 28, 2004 Mr. Kent Gorham -Reclamation Specialist Colorado Division ofMtnerala and Geology 1313 Sherman Street -Room 215 Denver, CO 80203 RE: ENERGY FUELS COAL, INC. - SOUTHFIELD MINE - PERMTT NO. C-81-014 NOTICE OF VIOLATION N0. C-2004-003 -Failure to Seed Approved Seed Mtx Dear-Kent Gorham: In accordance with Section 5.04.3 (1), this submittal is in regards to the above referenced Notice of Violation ("NOV") No. C-2004-003, Energy Fuels believes that N.O.V. No. C-2004- 003 should be vacated for the following reasons: Acting in good faith, immediately after the seeding that is referenced was completed which was during October, 2003, Energy Fuels submitted a letter dated October 22, 2003 to the Division with attached copies of all the Seed Tags listing the seed mixes and relative detail of seed planted. The letter and attached espies of seed tags was hand delivered to a representative of CDMG while at the Southfield Mine. The letter explained the start and completion dates and detail of the seeding operations. The referenced seed mix for the Corley property had been previously approved by the Division, approval dated November, 1993. Then revised again October, 2002 and March 2003 (MR-49). The revised change of seed which occurred in Mtnor Revision No. 49 ("MR-49") was inadvertently overlooked. It should be noted that just previous to the seeding and tree planting operations, changes to seed mix, shrubs and trees were requested by the two different landowners that occupy the reclamation site; the Corley family and Vento, et-al. Dr. Corley, property owner to which the NOV applies, has stated that the seed mix that was planted is acceptable - -that the referenced wheatgrasses of concern will wane to the intended future cattle grazing - • that wheatgrass was planted on the adjacent Newlin Creek Mine reclamation and did not hinder the Phase 3 Release of that site. A copy of Dr. Corley's letter addressed to the Division is enclosed with this submittal.