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.~ <br />energy fuels coal, inc. ~ <br />eouthfleld mine • poet a91ce bax 449 • Ilorence, coloredo 97229 • (719) 784-8395 <br />February 7, 1994 <br />Mr. and Mrs. John E. Thompson <br />P.O. Box 1 I S <br />Florence, Colorado 81226 <br />RE: Request for Waiver Letter <br />Dear Mr. and Mrs. Thompson: <br />Energy Fuels Coal, Inc. (Energy Fuels) is in process of filing application for a well permit for its <br />existing North Dewatering Well (North Well) with the Office of the State Engineer. The State <br />Engineer requires us to obtain waiver letters from owners of water wells. adjacent to the Southfield <br />Mine for reasons described below. <br />The North Well is located on. Vento property in the NW 1/4 of the SW 1/4, Section 19. The well is <br />completed into an abandoned area of the Southfield Mine approximately 380 feet below the surface. <br />Water entering all areas of the mine is subsequently pumped out through the North Well in order to <br />maintain productive and safe mining conditions. The water is released into Magpie Creek via a <br />holding pond on the surface. <br />The State Engineer has informed us that they regard the full extent of the underground mine <br />workings as a "well" with respect to reviewing the North Well permit application. Additionally, <br />their regulation (C.R.S. 37-90-137(2)) requires the applicant to obtain signed waiver letters from <br />owners of wells within 600 feet of the proposed well. In this case, the 600 feet rule is measured <br />with respect to the limits of the mine workings. <br />According to Energy Fuels' water rights records, John E. Thompson owns one (1) well within the <br />area encompassed by a 600 feet wide boundary of the existing mine workings. The permit number <br />for the well is listed as 022948F. <br />