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A well permit was issued for the Thompson Well in 1941. The total depth of the <br />well is 338, into the Rex Carbon coal seam, although the source of water is a thin <br />unit above sandstone at a depth of about 320 feet. Subsequently, the Rex <br />Carbon Underground Mine was developed beneath this area and eventually <br />encountered the well casing. A pipe was connected to the well within the mine <br />workings and water was routed to the surface as a water supply for the <br />Thompson Ranch. At present, the pipe within the mine has been damaged. The <br />casing at the surface has been obstructed; consequently, both mine and Division <br />personnel have been unable to detect any water level within the casing. <br />Available information on the well indicates it is, at present, abandoned. Extensive <br />drilling adjacent to this area by the operator did not reveal any laterally <br />continuous aquifer that could serve as a regional water source. <br />Energy Fuels has mined the Jack O'Lantern seam about 380 feet beneath the <br />abandoned Rex Carbon Mine, below the Thompson Well. This area has also <br />been mined under prior permits. The Thompson Well was already affected by <br />historic mining in the Rex Carbon and Jack O'Lantern coal seams. The <br />Thompson Well at this time is not serviceable for production or monitoring of <br />ground water. The operator is not predicting any additional impacts to this well <br />from their operation due to their location below the well and intervening <br />competent sandstones. <br />The original Division findings included Stipulation No.5 requiring that the operator <br />monitor water levels in the Thompson Well. Because of the information outlined <br />above, this stipulation is no longer considered necessary. However, Energy <br />Fuels has agreed to comply with Colorado water law if an injury from their <br />operation should occur to a valid active water right holder. A series of mine <br />dewatering wells were installed to dewater old underground workings overlying <br />the Southfield No.1 Mine. The dewatering system was used to reduce the <br />potential for mine inflows induced by the overlying workings. The operator does <br />not have any immediate plans to dewater additional workings. However, it is <br />possible that additional workings above the mine could be encountered that <br />would need to be dewatered. Such dewatering would need to be approved by <br />the Division prior to implementation and meet applicable State and Federal water <br />quality standards. <br />Mining likely created a drawdown of the piezometric surface in and around the <br />mine. It was expected that following the cessation of mining, the underground <br />workings would fill with water and the piezometric surface would then recover to <br />its approximate original level. To assess the effects of mining on the hydrologic <br />balance, EFCI committed to Stipulation No. 6 which required the operator to <br />submit an annual report of inflows, discharges and consumption of water within <br />the mine, including locations, quality, quantity duration and sources of the <br />inflows. With the closure of the mine and the sealing of the portals, this <br />stipulation has been terminated. <br />Page 24 of 36