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6. For this surface mining operation private mineral estate has been severed from <br />private surface estate; therefore, the documentation specified by Rule 2.03.6(2) <br />has been provided in the form of lease agreements, see Section 2.03.6, pages <br />2.03.30-38 of the permit application. (2.07.6(2)(f)). <br />7. On the basis of evidence submitted by the applicant and received from other <br />state and federal agencies as a result of the Section 34-33-114(3) compliance <br />review required by the Colorado Surface Coal Mining Reclamation Act, the <br />Division finds that Energy Fuels Coal, Inc. does not own or control any <br />operations which are currently in violation of any law, rule, or regulation of the <br />United States, or any State law, rule, or regulation, or any provision of the <br />Surface mining control and Reclamation Act or the Colorado Surface Coal <br />Mining Reclamation Act. (2.07.6(2)(g)(i)). <br />8. Energy Fuels Coal, Inc. does not control and has not controlled mining <br />operations with a demonstrated pattern of willful violations of the Act of such <br />nature, duration, and with such resulting irreparable damage to the environment <br />as to indicate intent not to comply with-the provisions of the Act. (2.07.6(2)(h)). <br />9. The Division finds that surface coal mining and reclamation operations to be <br />performed under this permit will not be inconsistent with other such operations <br />anticipated to be performed in areas adjacent to the permit area. (2.07.6(2)(i)). <br />10. The Division currently holds a surety bond (bond number 16-66-96) in the <br />amount of $380,431.00 from the National Union Fire Insurance Company. The <br />reclamation bond reflects the Division's projection of reclamation costs for worst- <br />case disturbance that will occur during the proposed permit term. (2.07.6(2)(j)). <br />11. The Division has made a negative determination for the presence of prime <br />farmland within the permit area. The decision was based on two letters - one <br />from the U.S. Department of Agriculture, dated 9/16/80 and the second, from <br />Colorado State University Agricultural Center, dated 9/23/80. Both letters state <br />that no prime farmland mapping units are found within the permit area. <br />(2.07.6(2)(k)). <br />12. The Division has made a negative determination for the existence of alluvial <br />valley floors with the permitted mine site area. This determination is based on <br />information provided by the applicant which demonstrates that no lands within <br />the Southfield Mine area qualify as prime farmlands (see Exhibit 24 of the permit <br />application). (2.07.6(2)(k) and 2.06.8(3)(c)). <br />However, based on the information provided in the application the Division has <br />determined that an alluvial valley floor exists within the permitted loadout area. <br />The alluvial valley floor is known as Oak Creek. Studies have shown that the <br />Oak Creek AVF will not be significantly impacted by loadout operations. See <br />Exhibit 14 and 24 of the permit application for more information. <br />Page 15 of 36