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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />October 10, 2012 <br />K2T LLC <br />Tena Gallagher and Linda Saunders <br />400 Cliffside Drive <br />Danville, CA 94526 <br />Re: Response to Letter of October 4, 2012 <br />Energy Fuels Coal, Inc., The Southfield Mine <br />DRMS Permit No. C- 1981 -014 <br />Dear Ms Gallagher and Ms Saunders: <br />Thank you for your letter of October 2, 2012 regarding the Southfield Coal Mine, and for <br />bringing these matters to my attention. Please allow this letter to serve as our initial response. <br />Some time ago, the Coal Program combined two groups of mines from the Trinidad area and the <br />Canon City area into a single group of mines for the sake of efficiency. Given the complexities <br />of this combined group of mines, Ms. Janet Binns was assigned as lead Specialist to these mines <br />due to her many years of experience with the Coal Program and her excellent technical expertise <br />in soils and revegetation. <br />During the last twelve months, however, one of the Trinidad -area mines created an unexpectedly <br />high level of work for the Coal Program. This unfortunately prevented the Program from <br />providing its characteristically excellent level of customer service. For this, we apologize. In <br />response, the Coal Program in August separated these two groups of mines. Ms. Binns is now <br />responsible for the Southfield Mine and the GEC Strip Mine, and another Specialist for the <br />Trinidad area mines. It is my sincere belief that this change in responsibilities will serve to <br />improve our level of service to K2T. <br />With regard to the specific concerns raised in your October 2, 2012 letter, staff from the Coal <br />Program are preparing a separate letter apprising you of the status of their investigations into <br />these matters. I have asked our staff to provide me a copy of that letter, and be kept <br />appropriately apprised of their work in addressing these issues. While I would like to request <br />that you continue to work with our Coal Program's staff regarding resolution of your concerns, I <br />welcome any further comments you may have. <br />Sincerely, <br />Loretta Pineda <br />Director <br />Office of <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pineda <br />Director <br />