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energy fuels coal, inc. <br />southfield mine • post office box 459 • florence, colorado 81226 • (719) 784 -6395 <br />July 23, 2013 <br />Ms. Janet Binns — Reclamation Specialist <br />Colorado Division of Reclamation Mining & Safety <br />1313 Sherman St — Room 215 <br />Denver, CO 80203 <br />RE: Technical Revision No.40 (TR -40) - Southfield Monitor Well MW -NW <br />Energy Fuels Coal, Inc. — Permit No. C -81 -014 — Southfield Mine <br />Dear Janet Binns: <br />L1 <br />Energy Fuels Coal, Inc (EFCI) submitted Technical Revision Request No.40 (TR -40) December 21, <br />2012, in which EFCI requested approval of a change in the groundwater monitoring point in monitor well <br />MW -NW. The TR was filed in response to NOV No. CV- 2013 -002 which sited EFCI for failing to ensure <br />that monitoring well MW -NW continued to function as designed. The NOV is currently on appeal to the <br />Mined Land Reclamation Board (the "Board "). The Division found that the Technical Revision was <br />incomplete in part because it lacked adequate technical and engineering support of the contention of EFCI <br />that the proposed monitoring point satisfied the monitoring requirements for MW -NW contained in <br />EFCI's permit. EFCI has not, prior to the date of this letter, submitted additional support for TR -40. <br />EFCI has now obtained additional hydrologic information and support data pertaining to the monitor well <br />MW -NW in the context of the Southfield mine's hydrogeology. As detailed below, the additional <br />information and evaluation demonstrates that MW -NW is not required to provide sufficient data to <br />evaluate the impacts on the groundwater regime at Southfield and the potential impacts thereto from <br />mining at Southfield. <br />Accordingly, EFCI hereby revises TR -40 to request approval to terminate further groundwater monitoring <br />in monitoring well MW -NW and eliminate MW -NW from the groundwater monitoring program. <br />EFCI has acquired further hydrogeologic information concerning the Southfield mine and MW -NW from <br />research and modeling data generated by the consulting firm Bishop - Brogden Associates, Inc., (`BBA "), <br />of Denver Colorado. EFCI requested that BBA review the goals and requirements of the section of <br />EFCI's permit establishing the groundwater monitoring program and evaluate those requirements using <br />the current available information as reported in, among other sources, the annual hydrology reports for <br />Southfield and a "report (Hydrologic Review) prepared by the Division's hydrologist. <br />