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May 24, 2013 <br />Ms. Janet Bums — Reclamation Specialist <br />Colorado Division of Reclamation Mining & Safety <br />1313 Sherman St —Room 215 <br />Denver, CO 80203 <br />RE: Response to DRMS Inspection Report — Monarch Road — Culvert S 1 <br />Energy Fuels Coal, Inc. — Permit No. C -81 -014 — Southfield Mine <br />Dear Janet Binns: <br />This is in response to your Inspection Report dated May 7 & 8, 2013 pertaining to the Southfield <br />mine. As you suggested naming the culvert, we can refer to the culvert pipe at issue on the Monarch Road <br />at Southfield as Culvert S 1. The culvert `sock' was replaced with a new 50 ft length of culvert sock on <br />May 21, 2013. <br />However, concerning the replacement of the culvert sock at Culvert S 1, I submit the following <br />comments and photos: <br />Photos 1 & 2 are of the old culvert sock and erosion at Culvert S 1 prior to installation of the new <br />sock, 5 -21 -2013; <br />The additional photos (5 -21 -2013) are of the GEC Pit drainages and erosion which are located <br />adjacent to and along the same roadway (Monarch Fan Road) as the culvert at issue, Culvert S 1. <br />It would seem that the Division would be more concerned with erosion in the "GEC" area which <br />has vastly more erosion than that of the erosion at Culvert S 1 referenced in the DRMS Inspection Report <br />of May 7 & 8, 2013. <br />We understand that the GEC area has been and still is under the jurisdiction of the DRMS. Given <br />the compared conditions (Culvert S 1 versus the GEC area) it is obvious that there are double - standards of <br />rules and regulation being applied to the two areas even though both pertain to the same roadway, the <br />Monarch Road. <br />EFCI is in receipt of the Division's letter stating that the DRMS is starting proceedings to <br />terminate the DRMS's jurisdiction over the GEC mine area. To terminate the DRMS's jurisdiction on the <br />GEC area indicates that the Division is satisfied with the current conditions of existing gullies and erosion <br />on the GEC area. Termination also implies that with the jurisdiction of the GEC reverting back to the <br />landowner, the landowner is expected to be satisfied as well. <br />Sincerely, <br />George V Patterson <br />Energy Fuels Coal, Inc <br />