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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />C O L O RA D O <br />P I v I S l o N o f <br />Denver, Colorado 80203 <br />RECLAMATION <br />Phone: (303) 866 -3567 <br />N I N G <br />MINING <br />FAX: (303) 832 -8106 <br />SAFETY <br />February 3, 2014 <br />John W. Hickenlooper <br />Governor <br />Scott Wanstedt <br />Blue Mountain Energy <br />3607 County Rd. 65 <br />Mike King <br />Executive Director <br />Rangely, CO 81648 <br />Loretta E. Pineda <br />Director <br />RE: Deserado Mine — Permit No. C- 1981 -018 <br />Professional Certification for the Coal Processing Waste Banks <br />Mr. Wanstedt, <br />The Division finds Deserado Mine's, C- 1981 -018, Coal Processing Waste Bank Report for the fourth quarter in 2013 is in <br />compliance with the following rules: <br />• 4.10.2(1) — The mine waste bank was inspected, on behalf of the person conducting surface coal mining <br />operations, by a qualified registered engineer. <br />• 4.10.2(2)(a) — The inspection occurred quarterly as required by the Division. <br />• 4.10.2(2)(b) — Inspections included observations and tests necessary to evaluate the potential hazard to human life <br />and property and to ensure that all organic material and topsoil have been removed and that proper construction <br />and maintenance are occurring in accordance with the plan submitted under 2.05.3(8) and approved by the <br />Division. <br />• 4.10.2(2)(c) — The engineer considered steepness of slopes, seepage, and other visible factors which could <br />indicate potential failure. <br />• 4.10.2(2)(d) — Copies of the inspection findings shall be maintained at the mine site. <br />• 4.10.2(3) — No potential hazards were noted in the fourth quarter 2013 Coal Processing Waste Bank Report. <br />Maintenance work that occurred this quarter included refuse placement, spreading and compaction on Refuse Piles 2 -3 -4 <br />and 5A during the first part of the fourth quarter. Stockpiling began early during the quarter due to unseasonably wet <br />conditions. All compaction tests conducted during the 2013 fourth quarter indicated Proctor densities above 90% as <br />required by Rule 4.10.4(3)(b). No signs of seepage or indications of slope failure were noted and surface drainage <br />facilities are properly conveying surface runoff. The Division does not have any questions or comments regarding the <br />2013 fourth quarter Coal Processing Waste Bank Report for Deserado Mine. <br />If you have any questions, please feel free to contact me at any time. <br />Sincerely, <br />Zach Trujillo <br />Environmental Protection Specialist <br />(303) 866 -3567 ext. 8164 <br />Zach. Trujillo @state. co ms <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />