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EFCI Southfield Mine - 2010 Annual Hydrology Report May 30, 2011 1.0 INTRODUCTION This 2010 Annual Hydrology Report (AHR) summarizes water use, discharges to streams, and ground and surface water hydrologic monitoring results for the reclaimed Southfield Mine and Loadout areas during the 2010 water year, which corresponds to the calendar year. Similar to previous reports, discussion of hydrologic data and comparison of these data with previous reporting periods are incorporated within the report. Thirty years of monitoring data are included in the database used to produce this report. The AHR was prepared and is submitted in accordance with Exhibit 25, Hydrologic Monitoring Plan, of approved mining and reclamation permit No. C- 81-014. Energy Fuels Coal, Inc ("EFCI") is the operator and permittee of the Southfield Mine located approximately 8 miles south of Florence, Colorado, and the associated Loadout facility located approximately 1.5 miles northwest of Florence, as shown on Figures 1 and 2. EFCI ceased mining, coal processing, and coal sales activities during December 2000 through early 2001. Final reclamation activities for the Mine Area were initiated in August 2001. Underground mine areas were accessible for ongoing mine inflow monitoring through September 2001. Monitoring of underground sites was discontinued upon permanent sealing of all mine portals in December 2001. EFCI discontinued use of the ancillary Loadout Area in 1996, and reclaimed the site in 1997. Water monitoring activities during the 2010 water year were conducted in compliance with the aforementioned monitoring plan. Hydrologic monitoring activities were conducted by George Patterson, Mine Manager; and all water samples were analyzed by ACZ Laboratories, Inc. of Steamboat Springs, Colorado. Surface water monitoring sites and groundwater monitoring wells for the mine site are shown on Figure 1, Mine Monitoring Locations. Figure 2, Loadout Monitoring Stations, indicates surface water monitoring sites adjacent to the loadout site. In order to provide a reference for identification and evaluation of any changes in groundwater levels or inflows, surface water flows, or surface and groundwater quality, data collected by the previous (and initial) operator, Dorchester Coal Company (1979-1985) and subsequent EFCI monitoring data (1985-2010) is included in the data summaries. Required monitoring data collected and summarized in this report includes the following: Water use Quantity and quality of surface runoff discharges (from ponds) to local streams Groundwater quality and well levels Stream flow quantity and quality 2.0 GROUNDWATER INFLOWS, WATER USE AND DISCHARGE 2.1 Mine Inflows Mine inflow monitoring was discontinued after September 2001, immediately prior to permanently sealing the mine in December 2001. Total mine inflows measured during 2001, as the last reporting period, were estimated at 5.2 acre-feet as compared to 10.3 acre-feet during the 2000 reporting period. Prior to 2001, mine inflow locations were monitored semi-annually during the spring and fall for each annual reporting period. The 2001 mine inflows represented a decrease from prior years possibly due to continuing drought conditions at that time along with the elimination of 2010 AHR textdoc Page