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i <br /> <br />Mr. John T. Skinner <br />Mr. David C. Shelton <br />Mr. Richard A. Mills <br />Mr. Donald A. Crane <br />July 24, 1980 <br />Page 3 <br />of its Wadge contracts by about 400,000 tons. The purchase of additional <br />equipment and employment of additional personnel is impossible without a <br />market for Lennox and sufficient reserves over which to amortize such an <br />investment. Energy Fuels simply cannot afford any additional expenses and <br />clearly would not be able to continue with any operations in Routt County. <br />Energy Fuels' sales group has been working ardously during all of 1980 to <br />find a buyer for Lennox coal. None has been located. No Lennox coal sales are <br />in the offing. The coal market is in sad shape, particularly with regard to <br />high sulfur coals such as the Lennox. Every coal producer in Northwestern <br />Colorado, including Energy Fuels, has experienced layoffs, cutbacks, and mine <br />closings in the past six months due to an inability to sell "compliance" coal. <br />In a bad market for "compliance" coal, there is certainly no market for "non- <br />compliance" Lennox coal. <br />For the foregoing reasons, Energy Fuels respectfully requests the consent <br />of the regulatory authority and the USGS Mining Supervisor to spoil the Lennox <br />coal seam as it is encountered in conjunction with the mining of the Sdadge <br />seam. <br />Energy Fuels would appreciate an early consideration of and decision on <br />this request so that initiation of the boxcut in the Lennox area can commence <br />as scheduled on September 15, 1980. Questions concerning this request should <br />be addressed to the undersigned. <br />Sincerely, <br />ENERGI FUELS CORPORATION <br />i <br />W. Richard Brown <br />Manager - Reclamation and <br />Engineering <br />WRB/lcy Enclosures <br />cc: GWGrandey <br />LALarson <br />MMcCarthy <br />