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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 />January 8, 2013 <br />Linda Saunders <br />34315 Forest Park <br />Elizabeth, CO 80107 <br />Paula Coulter <br />1041 Field Street <br />Lakewood, CO 80215 <br />Ted Coulter <br />19210 Lovers Lane <br />Grey Forest, TX 78203 <br />Tena Gallagher <br />400 Cliffside Dr. <br />Danville, CA 94526 <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 />Re: July 24, 2012 E -mail Message, The Southfield Coal Mine, <br />Energy Fuels Coal, Inc, Permit No. C- 1981 -014 <br />Dear Ms. Saunders, Ms. Coulter, Mr. Coulter and Ms. Gallagher: <br />Thank you for your e -mail message of July 24, 2012 regarding the Southfield Coal Mine in Fremont County, <br />Colorado. The message brought several issues to our attention. We would like to provide this reply. <br />Regarding the issues pertaining to Colorado State Senate Bill 89 -181, to drinking water standards and drinking <br />water availability, to levels of certain analytes in certain wells, to the adequacy of Southfield's water monitoring <br />program, to the potential effects of the Southfield Mine upon water wells near the mine, and to our pending <br />review of the 2011 Annual Hydrologic Report for the Southfield Mine, several of these issues are technically <br />and legally complex and are requiring extra time on our part to work through. We hope to resolve them soon. <br />Regarding the issue of the functionality of water monitoring well MW -NW, Energy Fuels Coal Inc on <br />November 28, 2012 was directed to restore or replace this well by the end of December 2012. The company <br />was informed that its failure to comply with this direction could result in enforcement action on our part. We <br />will be conducting an inspection this month to verify this. <br />Regarding the request that the quality of the water in Newlin Creek be tested, this is presently required of <br />Energy Fuels Coal Inc. The water quality sampling protocol for Newlin Creek may be found in Exhibit 25 of <br />the Southfield Mine's permit. The locations of the sampling points on Newlin Creek (NC -1; NC -2) may be <br />found on Map 12 of the Southfield Mine permit. <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />