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.EFCI Southfield Mine -Year 2005 Annual Hydrology Repoli May Il, 2006 1.0 INTRODUCTION This 2005 Armual Hydrology Report (AHR) summarizes ground water inflows, use, and dischazge, and ground and surface water hydrologic monitoring results for the Southfield Mine and Loadout areas during the 2005 water yeaz, which corresponds to the calendaz yeaz. Energy Fuels Coal, Inc ("EFCI") is the owner and operator of the Southfield Mine located approximately 8 miles south of Florence, Colorado, and the associated Loadout facility located approximately 1.5 miles northwest of Florence, as shown on Figures 1 and 2. EFCI ceased active mining and processing activities in late December 2000. The 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. Underground mine azeas were accessible for ongoing mine inflow monitoring through September 2001. Monitoring of underground sites was discontinued with permanent sealing of the mine portals in December 2001. EFCI discontinued use of the sepazate Loadout Area in 1996 until it was reclaimed in 1997. Water monitoring activities during the 2005 water yeaz were generally based on the approved monitoring plan, presented in Exhibit 25, Hydrologic Monitoring Plan, of the Colorado Division of Mining and Geology (CDMG) Mining and Reclamation Plan document. Hydrologic monitoring activities were conducted or supervised by Al Weaver. Hydrologic monitoring samples were analyzed by ACZ Laboratories, Inc. of Steamboat Springs, Colorado. Field and laboratory data for the 2005 water yeaz aze provided in Appendices A and B respectively. Surface water monitoring sites, ground water monitoring wells, and mine inflow monitoring sites aze shown on Figures 1 and 2, Mine and Loadout Monitoring Locations, respectively. In order to provide a reference for identification and evaluation of any changes in ground water levels or inflows, surface water flows, or surface and ground water quality, data collected by the previous operator, Dorchester Coal Company (1979-1985) and more recent EFCI monitoring data (1986-2005) is included in the data summaries. Required monitoring data collected and summarized in this report includes the following: • Quantity and quality of mine inflows • Water use quantities • Quantity and quality of mine water and surface runoff dischazges to area streams • Ground water quality and levels • Stream flow quantity and quality 6417/2006 annualhydrpt.doc NWCC INC. Page 7