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© MWH MONTGOMERYWATSON HARZA Febmary 25, 2003 Mr. Jim Stark Division of Minerals & Geology 1313 Sherman Street -Room 215 Denver, Colorado 80203 (303) 866-3567 Re: Energy Fuels Coal, Inc. -Southfield Mine (Permit No. C-81-014), 2002 Annual Reclamation Repor[ Dear Mr. Srark: The following summarizes final reclamation and site maintenance activiries that occurred at the Southfield Mine and associated Loadout during 2002. Active mining and related activity was suspended in December 2000, remaining stockpiled coal was sold and shipped during January and February 2001, and final reclamation activities for the Mine Area were initiated in August 2001. Energy Fuels Coal, Inc. (EFCI) discontinued use of the separate Loadout Area in 1996 and the Loadout Area was reclaimed in 1997. At the end of 2002, a total of approximately 81.2 acres, of the total dismrbed area of 97.5 acres, had been reclaimed. This total reclaimed acreage includes approximately 13.1 acres previously (1997) reclaimed in the Loadout Area and approximately 68.6 acres reclaimed during 2001-2002 in the Mine Area. The 16.3 acres of disturbed area that remain include roads, facilities, sediment control structures, and soil stockpiles, some of which (7.6 acres) are long-term facilities that have been approved for permanent retention in conjunction with the approved postmining land use. The remaining dismrbed areas (8.7 acres) are associated with temporary facilities that will remain in-place through the reclamation liability period to provide ongoing access and sediment control. The Loadout Area was seeded to the permanent revegetation seed mixture in 1997 and a large portion of the coal refuse disposal area was seeded to the permanent mixture as part of ongoing progressive reclamation efforts. Due, however, to ongoing drought conditions, areas reclaimed in 2001-2002 were initially seeded to the annual cover crop to stabilize these sites until adequate moisture is available for permanent seeding. As part of EFCI's regulaz si[e maintenance activities and consistent with any concerns noted by the DMG in their regular site inspection reports, surface water control stmcmres were inspected. Based on inspection, the surface water control strucmres were in good condition and no repairs were necessary. In addition to the final site reclamation work, EFCI also addressed several issues and concerns identified by either the DMG or surface landowners during the November 13a' and November 26r" Mine Area Phase I Bond Release inspections. These included the following: • Capped the drain pipe extending through the portal seals • Cut off rebar protruding from concrete blocks used as tiprap in Magpie Creek • Filled and regraded section of refuse pile perimeter di[ch to assure positive drainage • Removed section of PVC pipe below Pond 3 • Re-tested fueling area for any hydrocarbon contamination • Removed and disposed of coal fines from east perimeter of facilities area P.O. Box 174018 Tel: 970 879 6260 Delivering Innovative Projects and Solations Worldwide 1475 Pine Grove Road, Suite 109 Fax: 970 679 9048 Steamhoat Springs, Colorado 80477