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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />June 30, 2009 <br />George Patterson <br />Energy Fuels Mining Company <br />P.O. Box 459 <br />Florence, CO 81226 <br />RE: 2008 Annual Hydrology Report Review <br />Southfield Mine <br />Permit No. C-81-014 <br />Mr. Patterson: <br />COLORADO <br />D I V1 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 has completed review of the 2008 <br />Annual Hydrology Report (AHR) for the Southfield Mine. Please review our questions <br />or comments, if any, (highlighted in bold text) and respond, if necessary, within 30 days. <br />Monitoring Frequency - Surface Water <br />Exhibit 25 of the approved permit application details the hydrologic monitoring <br />frequency for surface and ground water at the site. Magpie Creek, Newlin Creek, and <br />Second Alkali Creek are monitored at the reclaimed mine site and Oak Creek is <br />monitored at the loadout. The required frequency is semi-annual visits with samples <br />taken semi-annually if flow is present. Visits were made to all required sites in May and <br />December during 2008. The only flow recorded during spring and fall visits was <br />recorded at the upstream and downstream sites on Oak Creek in late May. Water <br />samples were taken and sampled, although the sampling was not completed for the <br />constituents as required by Exhibit 25, part I (C) (5.) The operator has provided the <br />correct lab sampling information to the laboratory to ensure correct water testing for <br />future samples regarding dissolved and total species concentrations. <br />Monitoring Frequency - Sedimentation Pond Discharges <br />Four sediment ponds remain (two at the mine site and two at the loadout) to treat <br />surface runoff from the reclaimed areas. No discharge was recorded during 2008 from <br />any of these four ponds. This is consistent with Division inspection over the period. <br />Monitoring Frequency - Ground Water <br />Four ground water wells are monitored at the site on a semi-annual basis for both water <br />level and water quality. Two wells (MW-16 and MW-65) are completed in the Jack O <br />'Lantern coal seam and two wells (MW-23 and MW-NW) are completed in the Red <br />Arrow coal seam. These four wells were visited in May and December of 2008. MW- <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines