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<br />Raton Creek Mice -Energy Fuels Mining Company <br />2003 AHR -Page 2 <br />conductivity readings during 2004 were higher as compared to the time period 2000 through <br />2003. The Refuse Well however, showed less change in conductivity during 2004 other than <br />compared to the brief period of the previous report yeaz (2003). <br />Well levels for both monitoring wells are presented graphically on Figures 1 and 2 for the <br />Refuse and Iuppa Wells, respectively. The unusually low level at the end of the report yeaz <br />2002 (AHR 2002) is, however, under question. This level was monitored by a third party and <br />may be in error. Monitoring results from the following periods indicated a water level consistent <br />with the historic average. <br />Water levels at the Iuppa Well averaged usual levels. The fluctuations are likely do to the <br />landowner's use of the well and 'draw-down' in relation to the timing of the sample monitoring. <br />The approved ground water monitoring program adequately monitors potential impacts of <br />mining on the ground water system. The data collected through the period of this report indicate <br />that no significant ground water impacts have occurred as a result of mining. <br />Surface Water and NPDES Discharges <br />Water quality data collected from the approved monitoring point (Monitoring Point 02) on the <br />Starkville Diversion aze shown on water quality Table 4. Diversion flow measurements are <br />summarized on Table 5. No surface flows were monitored in the permanent diversion during the <br />current reporting period (2004). <br />Monitoring data for Pond No. 1 outfall (NPDES 001) are summarized and shown on Table 1 for <br />the current reporting period. Post-mining dischazge monitoring parameters include flow, <br />settleable solids, pH, and oil and grease under the approved Colorado Wastewater Discharge <br />permit. No pond discharges (if any) were monitored in 2004. During an inspection reported by <br />CDMG, dated May 6, 2004, the inspector states, "The sediment pond held water just to the top <br />of the primary riser". "It appeared to have dischazged at some point in the recent past". "Water <br />in the pond was only slightly cloudy". <br />Apparently any dischazge was of a short duration and did not allow ample time for the operator <br />to obtain a sample. <br />The approved surface water monitoring program effectively monitors the impacts of mining <br />operations on the surface water system adjacent to the Raton Creek Mine site. Monitoring data <br />documented through the period of this report indicate no significant impacts to surface water as <br />a result of mining operations. <br />Precipitation Information <br />Precipitation data was no longer collected as approved by the revision to the permit referenced <br />above. In general, drought conditions occurred during years 2001 through the 2003 reporting <br />