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August 21, 2012 C- 1981 - 014 /Southfield Mine JHB <br />mining operation. All runoff from the Southfield disturbance areas are directed to Pond 5, Pond 4, or 6 SAE's. <br />Runoff contributing to additional down cutting of the road bank appears to originate north of the Southfield <br />disturbance area. <br />Culverts 39 and 40 were functioning as designed and there was no evidence of runoff breaching from the access <br />road drainage ditch. Sediment that had been stuck to the sides of Culvert 39 had flushed into Pond 5. Pond 5 was <br />holding a shallow pool of water at the south end of the pond. Water had not discharged from Pond 5. <br />There is evidence of flow from the Southfield access entering the south ditch immediately north of Pond 5 and the <br />access road to the Monarch Fan site. Some down cutting at this point was noted. Reinforcement of this location is <br />warranted. This location is immediately east of the Southfield mine id sign. <br />Some rilling was noted on the northeast corner of the permanent mine tunnel. George discussed implementing <br />sediment control measures to disperse runoff flow at this location. <br />Pond 4 was damp but not holding any water. The discharge riser was operating as designed. The pond decants <br />when the water elevation reaches the discharge elevation in the riser. A gated valve has been sealed on purpose to <br />allow the pond to discharge passively. This is compliance with the pond design. <br />The rock dust storage SAE is well vegetated and no noxious species evident. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Stabilization; Placement: <br />The RDA remains stable. Vegetation remains dry but viable. Permanent ditches around the RDA <br />continue to function as designed, with no signs of blockage or breaching. Noxious weeds were not evident. No <br />concerns were noted with the RDA. <br />REVEGETATION — Rule 4.15 Vegetative Cover; Timing: <br />Vegetation throughout the site remain dry. Late season stores appear to have promoted growth of warn <br />season grasses. Blue grama and Side oats grama were looking robust. Shrub species continue to do well. <br />SUBSIDENCE — Rule 4.20: <br />Energy Fuels has yet to repair the subsidence features noted previously. These features need repair as <br />soon as practicable and before the winter weather arrives. Energy Fuels needs to assure that these features are no <br />longer a safety concern. <br />The subsidence crack located east of the access road to the Newlin Creek topsoil stockpile footprint was observed. <br />Energy Fuels repaired this feature previously. Repairs to this surface expression are appropriate and in <br />compliance with Rule 2.05.6(6)(f)(iv). <br />OFFSITE SUPPORT FACILIITES - Rule 4.04,4.28: <br />The load out site was dry. No train cars were being stored on the rail at the load out during the inspection. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 6 <br />