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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />May 15, 2014 <br />Scott Wanstedt <br />Blue Mountain Energy <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit C- 1981 -018 <br />County Road 65 Subsidence Monitoring Report for First Quarter 2014 <br />Sediment Pond Inspection Report for First Quarter 2014 <br />Mr. Wanstedt, <br />The Division finds Deserado Mine's, C- 1981 -018, Subsidence Monitoring Report for County <br />Road 65 in compliance with the following rules: <br />• 2.05.6(6) - Subsidence Monitoring report was received on April 29, 2014. Longwall <br />mining did not occur under County Road 65 during this quarter. No damage to the road <br />surface from long -term settling was noted. <br />The Division finds Deserado Mine's, C- 1981 -018, Sediment Pond Inspection Report for the 2014 <br />first quarter in compliance with the following rules: <br />• 4.05.9(14) - All impoundments were inspected by a qualified registered professional <br />engineer and other qualified professional specialists. <br />• 4.05.9(15)(a) - No appearance of erosion, instability, structural weakness or other <br />hazardous conditions were observed. <br />• 4.05.9(15) (b) - Existing and required monitoring procedures were met. <br />• 4.05.9(15)(c) - The depth of impounded water at the time of inspection was <br />documented. <br />• 4.05.9(15)(d) - Existing storage capacity of impoundments were documented. <br />• 4.05.9(15)(e) - No new aspects of the structure affecting stability or requiring <br />maintenance was documented during the 2014 first quarter sediment pond inspection <br />report . <br />If you have any questions, feel free to contact me. <br />Sincerely, <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />_'c��a <br />1876 <br />