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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY I? <br />Department of Natural Resources !? C <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 J ??V li <br />FAX: (303) 832-8106 <br />? <br />December 2, 2008 DEC 112008 <br />Division of Reclamation, <br />Frank Filas Mining and Safety <br />Energy Fuels Resources Corporation <br />44 Union Boulevard, Suite 600 <br />Lakewood, Colorado 80228 <br />Re: Whirlwind Mine, File No. M-2007-044, Temporary Cessation Notice Clarification. <br />Dear Mr. Filas: <br />COLORADO <br />D I V I S I ON Of <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation Mining and Safety received Energy Fuels Notice of Temporary Cessation on November 26, 2008. The <br />Division understands that due to economic conditions Energy Fuels is conserving its capital and focusing in on another core project for <br />2009. Energy Fuels will have to submit a Technical Revision to the permit addressing the change in activity status. After review, staff <br />notes the following issues for Energy Fuels to consider: <br />1. Any Notice of Temporary Cessation is processed as a type of revision, and the procedures of Rule 1. 13.5 and 1.1.3.6 <br />apply. There is also a fee involved of $1,006.00. <br />2. Based upon review of both 34-32-103(6), and Rule 1. 13, it seems that Energy Fuels may apply for temporary cessation <br />now if the operator "plans" to temporarily cease operations for the 180 days or more. If they know this with certainty, <br />then they are required to file. If there is uncertainty about their plans, and they do not plan to be down 180 days, then they <br />can wait. If and when they approach the 180 days without mining; then a filing would be needed. This is really up to <br />Energy Fuels. <br />3. Energy Fuels may alternatively want to consider amending the permit to utilize the provisions of 1.13.7, if said provisions <br />actually apply to their situation. This notes the operation is classified as having intermittent status which would allow <br />operations of less than 180 days but requires a more in-depth annual report to the Division. There are no penalties for <br />operating over 180 days and it provides some flexibility as economics change. <br />4. DRMS can only recommend the options based upon the law and the regulations. Only Energy Fuels can assess its actual <br />operations plans, and if they truly plan to be down for 180 days, then they need to file a notice of temporary cessation. If <br />they will be in and out of production over the same period, or if their plans are not certain at this time, then they can wait. <br />5. It will be important that they maintain strict control of ground compliance at the site, and it will be important that they <br />review the same language in the Act and regulations on their own, then make the filing based upon their true intentions, <br />and as required by the law and the regulations. A lack of mining for more than 180 days, without a TC notice will require <br />DRMS to assess whether reclamation and final closure is required, and whether a noncompliance situation has occurred. <br />DRMS cannot let the issue go unresolved if the operator "plans to, or does, temporarily cease production...." for 180 days <br />or more. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand Junction Field <br />Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.1117. <br />Sincerely, <br />G. Russell Means <br />EPS 11, Grand Junction Field Office <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />