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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8706 <br />SETTLEMENT AGREEMENT JUSTIFICATION <br />Energy Fuels Coal, Inc. <br />Southfield Mine-Permit Number C-1981-014 <br />Notice of Violation No: CV-2004-003 <br />dames B. McArdle, Conference Officer ~~ <br />COLORADO <br />D I V I S I O N O F <br />MINERALS <br />GEOLOGY <br />RECLAMATION•MINING <br />SAFETY•SC IENCE <br />6111 Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Notice of Violation Number CV-2004-003 was issued on September 13, 2004 for failure to <br />seed approximately 13 acres of the Corley property at the Southfield Mine with the approved <br />seed mix. <br />On November 30, 2004, an Assessment Conference was held at 1313 Sherman Street, Room <br />215, Denver, Colorado. In attendance, in addition to the Conference Offtcer, was Mr. Dave <br />Berry and Mr. Kent Gorham representing the Division and Mr. George Patterson and Mr. Rich <br />Munson representing the operator. Kent Gorham discussed the nature of the violation, which <br />was the use of an unapproved seed mix containing crested wheatgrass and intermediate <br />wheatgrass. Both are aggressive species and were replaced by Indian ricegrass and bluebunch <br />wheatgrass in TR 34. The landowner and an adjacent landowner were both concerned about <br />the seed mix to be used on their respective sites. <br />Required abatement included providing a plan to interseed the approved species and a <br />demonstration that all approved species were or will be seeded at the approved rate. The time <br />for abatement was set on or before October 31, 2004. <br />Mr. George Patterson discussed the difficulties of working with the landowners to achieve an <br />acceptable revegetation plan on their respective properties, both having different seed <br />requirements. He also discussed certain details regarding the seeding. In the fall of 2002, the <br />company seeded a cover crop of oats in preparation of seeding the permanent mix the following <br />spring. In the spring of 2003, the company was ready to seed but was hesitant due to the <br />drought conditions. Rocky Mountain Reclamation out of Laramie, Wyoming was scheduled to <br />seed the final mix but just seeded oats on the slopes. George stated that the permanent seed <br />mix was planted in October of 2003 and that the seed tags were hand delivered to the Division <br />iwo weeks following the seeding. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />