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July 19, 2012 C- 1981 - 014 /Southfield Mine JHB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V =Violation Issued NA Applicable <br />N - Air Resource Protection <br />N -Availability of Records <br />N - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />R - Revegetation <br />R - Subsidence <br />Y - Slides and Other Damage <br />N - Support Facilities On -site <br />Y - Signs and Markers <br />N - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Binns of CDRMS. The Mine is a reclaimed underground mine <br />with no personnel remaining on site. Records are stored in the Energy Fuels Coal Company office in Florence. <br />An inactive coal loadout is located offsite, west of the town of Florence. Neither the records, or load out were <br />inspected during this inspection. <br />The Mine was extremely dry. The region is experiencing drought conditions. Although some portions of <br />Colorado are receiving precipitation from isolated thunderstorms, the Southfield Mine area appeared very dry. <br />Weather was hot, windy and partly cloudy. A wildfire had been reported and contained on 7/18 southwest of <br />Wetmore, Colorado, several miles south of the Southfield mine. Planes associated with fire observation or combat <br />were observed flying back and forth in the general area. <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 Monitoring <br />4.05.13, Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9, Stream Buffer Zones 4.05.18: <br />Both ponds, Pond 4, and Pond 5 were dry at the mine site. Access road ditches remain functional. <br />Ground water well NW -MW still has cable in the well. At this time Energy Fuels has not removed this material. <br />Newlin Creek was dry and not flowing. <br />GENERAL MINE PLAN COMPLANCE: <br />Subsidence feature mitigation and NW -MW are still in need of resolution. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Number of Partial Inspection this Fiscal Year: I <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 9 <br />