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and others being consumed, EFCI has told the Corley Company that it would transfer at least some, and <br />possibly all, of the Twin Lakes shares to the Corley Company upon final reclamation bond release for <br />Southfield. This timing is apparently not soon enough for the Corley Company. <br />Concerning the Southfield monitoring well, NWMW, Dr. Corley quoted the Division's May 15, <br />2012 inspection report wherein the inspector states that on April 17, 2012, DRMS detected water in the <br />well at 354 ft below the ground surface. George Patterson countered Dr. Corley's comment explaining <br />that the inspectors report failed to adequately explain, although briefly mentioned, that the water was <br />detected a ter more than 1,500 gallons of water had been dumped down the well. The Report could be <br />read to imply that the 354 ft level was the level of water in the mine void rather than a temporary <br />suspended pocket of water resulting from the 1,500 gallon water 'test'. Patterson further added that <br />subsequent to the April 17 inspection, numerous probings of the well over a 6 week period resulted in no <br />more water being detected in the well indicating that the water dumped in the well for testing had <br />dissipated. <br />Concerning the subsidence located at the abandoned Canon National mine, EFCI committed to <br />Corley that the subsidence would be backfilled and reclaimed as part of EFCI's final reclamation work to <br />be done in conjunction with other work to be completed prior to requesting final bond release. Corley <br />agreed that the spoils pile material located adjacent to the subsidence could be used as backfill for the <br />subsidence features. <br />With regard to Corley's other reclamation concerns about reclaiming other boreholes, Corley was <br />reminded that the boreholes are included in the reclamation bond. EFCI stated that it was their preference <br />to schedule the approved remaining reclamation tasks near the end of the 10 Year Reclamation Liability <br />Period to include all necessary tasks in one operation rather than having the extra expense of intermittent <br />scheduling, mobilization and demobilization resulting for separate operations. <br />If you have questions or require further information, please contact me. <br />Sincerely, <br />George V Patterson <br />General Mine Mgr <br />Energy Fuels Coal, Inc <br />