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to 4 days each month due to low mine water inflow. Because of this discharge schedule, it is <br />not possible to pursue the accelerated WET testing option. Bench chemistry noted in the <br />WET Test report indicate that dissolved oxygen (DO) levels were very low in the first <br />composite sample collected on June 24 and remained somewhat low on the June 25 and 26 <br />samples. The DO levels were recorded at levels low enough that failure or poor performance <br />of the WET test would be expected. Analytical results from Energy Laboratories, indicate <br />that the chemical oxygen demand (COD) in the treated water was higher than the untreated <br />mine water. <br />Energy Fuels plans to conduct the PTI in a four step process as follows: <br />1) Determine cause of low DO and high COD levels by bench scale and chemical testing <br />2) Make necessary adjustments to treatment process <br />3) Determine effectiveness of adjustments with chemical testing <br />4) Confirm resolution of cause with WET test <br />Energy Fuels is currently isolating and testing the affects of the individual treatment <br />chemicals with bench scale tests while using DO levels as an indicator. Adjustments to the <br />treatment process will be made prior to the next water discharge, currently scheduled for late <br />July. The effectiveness of the treatment system adjustments in July will be determined by <br />chemical analysis results (i.e., dissolved oxygen levels and COD). Energy Fuels anticipates <br />that the confirmation WET test will be conducted in August or September 2008. <br />Energy Fuels will provide the WQCD with status reports due on the following schedule: <br />30-day status report August 7, 2008 <br />60-day status report September 6, 2008 <br />90-day status report October 6, 2008 <br />120-day final report November 5, 2008 <br />The above schedule is dictated by the water discharge permit. At this point in time, Energy <br />Fuels believes that it will be possible to accommodate this schedule. However, due to the <br />low frequency of discharge from the treatment plant, opportunities to make adjustments to <br />the treatment system are typically limited to once per month. As a result, the resolution of <br />the PTI may run past the above schedule. If this were to occur, Energy Fuels would request <br />an extension from WQCD. <br />Please feel free to contact me at (303) 974-2151 if you need any additional information. <br />Sincerely, <br /> <br />Zach Rogers, EIT <br />Environmental Engineer. <br />Cc: Jeff Osborn, Frank Filas, Marty Olson, (Energy Fuels) <br />Mr. Andrew Neuhart (WQCD) <br />Friergy Fuck, Inc. 44 Union Blvd, `quite 600 <br />wNvw encrgyFuels.ccom La, °:vvood, Colorado 80228 <br />Phone: 303-9-14-2 140 <br />Fav 303-9:4-2141