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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 7, 2008 `~ <br />Frank Filas / <br />Energy Fuels Resources `~ <br />44 Union Blvd., Suite 600 <br />Lakewood, CO 80228 <br /> <br />G~l~y <br /> COLORADO <br /> DIVISION O F <br /> RECLAMATION <br /> MINING <br /> - &- <br /> SAFETY <br />~~~~~~~® <br /> Bill Ritter, Jr. <br /> Governor <br />FED 13 2008 Harris D. Sherman <br /> Executive Director <br />Division of Reclamation, <br /> <br />Mining and Safety Ronald W. Cattany <br /> Division Director <br /> Natural Resource Trustee <br />t/ <br />Re: Whirlwind Mine Application, M-2007-044, Initial Reclamation Liability Estimate. <br />Dear Mr. Filas, <br />The Division of Reclamation Mining and Safety (DBMS) has calculated the "Initial Reclamation Liability <br />Estimate" for the proposed Whirl Wind Mine. The calculations are based on information supplied within the <br />permit application, adequacy review and discussions with DBMS staff over specific issues. The estimate is <br />divided into 4 sections. The costs for the Packrat Portal, Whirlwind Portal, Bulk head constructions, and satellite <br />vent and power pads. <br />A major difference between the original Exhibit L estimate and the current one is the costs of bulkhead <br />construction. DBMS staff and Energy Fuels consultant Greg Lewicki worked extensively on this issue. The <br />agreed upon bulkhead estimate of $226,706.00 is included along with surface reclamation estimates of <br />$148,372.00. The total estimated reclamation liability is $375,078.00. Please review the surface reclamation <br />bond estimate carefully. If there are any issues that need clarification or correction please contact staff as soon as <br />possible. After review, if Energy Fuels accepts the estimate please submit written acceptance. Agreement on the <br />Reclamation Financial Warranty must be completed prior to any decision recommend2tion. <br />Please note that the BLM has been sent a copy of the estimate. By Memo of Understanding, BLM must concur <br />on the estimate. If they have any issues they must be addressed. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117. <br />Sincerely, <br />,~' ~ %~ ._ <br />G. Russell Means <br />Environmental Protection Specialist <br />Cc: Carl Mount, Senior Environmental Protection Specialist, North Team Supervisor <br />Allen Sorenson, DBMS Engineer <br />Greg Lewicki, Lewicki and Associates <br />Scott Gerwe, BLM Grand Junction Field Office <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />