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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman S[., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />March 2, 2005 <br />George Patterson <br />Energy Fuels Mining Company <br />P.O. Box 449 <br />Florence, CO 81226 <br />RE: Liability Insurance Certificate, Southfield Mine, Permit No. C-81-014 <br />Raton Creek Mine, Permit No. C-82-055, Marr Mine, Permit No. C-80-008 <br />Dear Mr. Patterson: <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />iECLAMATION•MINING <br />SAFETY •S CIENCE <br />Bill Owenz ' <br />Governor <br />Russell George <br />Executive DireROr <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />The Division of Minerals and Geology received a letter from Brown and Brown Insurance on <br />January 19, 2005 concerning the public liability insurance certificate for the three mines listed <br />above. <br />Policy Description: Energy Fuels Corporation <br />Policy Number: 79544662 <br />Insurance Co: Chubb Custom Insurance Company <br />Effective Dates: 10!01!04 to 10!1/05 <br />Limits: $1,000,000.00 <br />As per the correspondence and associated attachments, Chubb Custom Insurance Co. has <br />declined to modify the cancellation clause as requested by the Division of Minerals and Geology. <br />Rule 2.03.9 requires that each applicant have a public liability insurance policy in force during <br />the life of the permit, including completion of all reclamation operations under Rule 4. <br />Additionally, Rule 2.03.9 requires that the policy include a rider requiring that the insurer notify <br />the Division whenever substantive changes are made in the policy, including any termination of <br />failure to renew. Currently, the certificate submitted to the Division for the three mine sites does <br />not satisfy the requirements of Rule 2.03.9 regarding changes to, or cancellation of, the policy. <br />Therefore, the Division cannot accept the current certificate of liability insurance for the three <br />mines listed in the subject heading. <br />To avoid possible enforcement action, within 30 days, please provide evidence in the form of a <br />certificate that the issuing insurer will notify the Division if substantive changes are made in the <br />policy, including termination or failure to renew. If you have questions please call me. <br />Sincer /~~~~ <br />Ke t orham/`-y, <br />Environmental Protection Specialist II <br />CC: Mike Boulay <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />