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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFEIY <br />Department of Natural Resources <br />7313 Sherman S[., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />TAX: (303) 832-8106 <br />June 6. 2007 <br />George Patterson <br />Energy Fuels Mining Company <br />P.O. Box 449 <br />Florence, CO 81226 <br />RE: 2005-2006 Annual Hydrology Report Review <br />Southfield Mine <br />Permit No. C-81-014 <br />Mr. Patterson: <br />COLORADO <br />D IYISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, lr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natual Resource Trustee <br />The Division of Minerals and Geology has completed review of the 2005 and 2006 <br />Annual Hydrology Reports (AHR) for the Southfield Mine. Please review our questions <br />or comments and respond, if necessary, within 30 days. <br />Monitoring Frequency -Surface Water <br />Exhibit 25 of the approved permit application details the hydrologic monitoring <br />frequency for surface and ground water at the site. Magpie Creek, Newlin Creek, and <br />Second Alkali Creek are monitored at the reclaimed mine site and Oak Creek is <br />monitored at the loadout. The required frequency is semi-annual visits with samples <br />taken semi-annually if flow is present. Visits were made to all required sites in April and <br />December during 2005, and in June and November in 2006. Flow was recorded at all <br />sites in April 2005 (with the exception of Second Alkali creek and Magpie Creek) and <br />water samples were taken and sampled, at a minimum, for the constituents as required <br />by Exhibit 25, part I (C) (5.) <br />Monitoring Frequency -Sedimentation Pond Discharges <br />Four sediment ponds remain (two at the mine site and two at the loadout) to treat <br />surface runoff from the reclaimed areas. No discharge was recorded during 2005 or <br />2006 from any of these four ponds. This is consistent with Division inspection over this <br />two year period. <br />Monitoring Frequency -Ground Water <br />Four ground water wells are monitored at the site on asemi-annual basis for both water <br />level and water quality. Two wells (MW-16 and MW-65) are completed in the Jack O <br />'Lantern coal seam and two wells (MW-23 and MW-NW) are completed in the Red <br />Arrow coal seam. These four wells were visited in June and December of 2005, and in <br />June and November 2006. MW-NW was found dry on all occasions while MW-16 was <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />