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December 14, 2011 C- 1981 - 014 /Southfield Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />Y - Revegetation <br />R - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y - Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a complete inspection conducted by Janet Binns of CDRMS. Mr. George Patterson of Energy <br />Fuels Coal, Inc. met the inspector at the mine office in Florence to provide access to the records. The mine <br />is a reclaimed underground mine. As such, no personnel remain on the mine site, Mr. Patterson <br />accompanied the inspection on the mine property. The permit also includes a partially reclaimed load out <br />located east of the town of Florence. No personnel remain at the load out. The weather was cool and dry, <br />with a thin layer of snow present throughout the mine site. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Mine records are stored in Florence, CO at the Energy Fuels Mine office. Mine records were verified and <br />found complete. Verification of Records form is attached to this inspection. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water <br />Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream <br />Buffer Zones 4.05.18 <br />Pond 5 remains dry of ponded water. Western culvert outlet to pond has most sediment cleared out of pipe. <br />some remains but >3/4 of culvert diameter is clear of sediment. <br />Pond 4 is dry, though has a thin duting of snow on it. <br />Ditches throughout mine site were functioning with snow meltwater. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Stabilization: <br />The Refuse Disposal Area (RDA) is inactive, has been covered with the required cover material, and has a <br />good stable stand of permanent vegetation established. The North and West slopes had a thin cover of snow. <br />The RDA appeared stable with no observable rills. The collection ditches surrounding the RDA were in <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 14 <br />