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EM Southfield Mine - 2008 Annual Hydrology Report April 15, 2009 <br />1.0 INTRODUCTION <br />This 2008 Annual Hydrology Report (AHR) summarizes water use, discharges to streams, and <br />ground and surface water hydrologic monitoring results for the Southfield Mine and Loadout <br />areas during the 2008 water year, which corresponds to the calendar year. Similar to previous <br />reports, discussion of hydrologic data and comparison of these data with previous reporting <br />periods are incorporated within the report. This AHR is prepared and submitted in accordance <br />with Exhibit 25, Hydrologic Monitoring Plan, of the approved mining and reclamation permit. <br />Energy Fuels Coal, Inc ("EFCI") is the operator and permittee of the Southfield Mine located <br />approximately 8 miles south of Florence, Colorado, and the associated Loadout facility located <br />approximately 1.5 miles northwest of Florence, as shown on Figures 1 and 2. EFCI ceased <br />mining, coal processing, and coal sales activities during December 2000 through February 2001. <br />Final reclamation activities for the Mine Area were initiated in August 2001. Underground mine <br />areas were accessible for ongoing mine inflow monitoring through September 2001. Monitoring <br />of underground sites was discontinued upon pennanent sealing of all mine portals in December <br />2001. EFCI discontinued use of the ancillary Loadout Area in 1996, and reclaimed the site in <br />1997. <br />Water monitoring activities during the 2008 water year were conducted in compliance with the <br />approved monitoring plan, presented in Exhibit 25, Hydrologic Monitoring Plan, of the Colorado <br />Division of Reclamation, Mining and Safety (DRMS) permit application document. Hydrologic <br />monitoring activities were conducted by George Patterson, Mine Manager; all water samples <br />were analyzed by ACZ Laboratories, Inc. of Steamboat Springs, Colorado. Surface water <br />monitoring sites and ground water monitoring wells are shown on Figure 1, Mine Monitoring <br />Locations, and Figure 2, Loadout Monitoring Stations. <br />In order to provide a reference for identification and evaluation of any changes in ground water <br />levels or inflows, surface water flows, or surface and ground water quality, data collected by the <br />previous operator, Dorchester Coal Company (1979-1985) and subsequent EFCI monitoring data <br />(1985-2008) is included in the data summaries. Required monitoring data collected and <br />summarized in this report includes the following: <br />• Water use quantities <br />• Quantity and quality of mine water and surface runoff discharges to area streams <br />• Ground water quality and levels <br />• Stream flow quantity and quality <br />2008 AHR.doc WP Page 1