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??q?o-oo(o -1'Raq <br />Binns, Janet <br />From: Light, Erin <br />Sent: Wednesday, December 02, 2009 3:00 PM <br />To: Energy Fuels Coal, INC. <br />Cc: Schalnus, Shanna; Binns, Janet <br />Subject: RE: Justification to leave existing pond as Permanent Structure - Jackson County, CO <br />George - Water Commissioner, Shanna Schalnus, visited the Kerr pond referenced below this morning. The pond was <br />completely iced over though she was able to break through the ice. It was difficult to ascertain for certain whether or <br />not the pond intercepts ground water, but given its location and proximity to the Illinois River and the fact that you <br />informed me that the pond stays full year round, it is my conclusion that the pond does intercept groundwater and as <br />such is considered a well. This pond-well is located in an over-appropriated basin and does not have a well permit. A <br />well permit cannot be obtained for this well until such time that the applicant has obtained a decreed plan for <br />augmentation from the Court or a substitute water supply plan from this office. <br />I believe you are fully aware of the circumstances surrounding this pond-well. At this time, it is recommended that <br />Energy Fuels Coal back fill the pond to at least two feet above the high ground water table elevation so as to not expose <br />ground water until such time as: 1) a well permit has been obtained for the ground water pond in accordance with an <br />approved substitute water supply plan or plan for augmentation; or 2) the pond is lined in accordance with the State <br />Engineer's guidelines dated August 1999. <br />Erin <br />From: Energy Fuels Coal, INC. [mailto:efcoal@rmi.net] <br />Sent: Monday, November 23, 2009 5:13 PM <br />To: Light, Erin <br />Subject: Justification to leave existing pond as Permanent Structure - Jackson County, CO <br />Erin: <br />Thank you for taking my call today. The small pond (1.1 ac ft total volume) is being requested to remain as a permanent <br />structure for wildlife use & livestock watering. <br />However, Kerr Coal Company (Kerr) is currently scheduled to reclaim (backfill) the pond as per the current status of Kerr's <br />permit regulated by the Division of Reclamation, Mining & Safety (DRMS). Kerr is requesting the DRMS to approve the <br />pond to remain permanently and the DRMS requires 'Water Rights' for the pond in order to leave it in place. Kerr, not <br />having water rights for that pond, is hoping that perhaps Junior Rights from the adjacent Wildlife Refuge ditch (or some <br />other means) would suffice to change the pond to a permanent status. <br />Location of the pond is: Lat 40.716859, Long -106.283764. Section 29, T9N, R79W, Jackson County, CO. One mile <br />south of the town of Walden. <br />As we discussed, Janet Binns with the DRMS is the reclamation specialist (inspector) for the project. Phone 303 866 3567 <br />Ext 8107. Email: ianet.binns(aD-state.co.us <br />Thank you, <br />George V Patterson <br />Gen Mine Mgr <br />Kerr Coal Company