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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 />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 first <br />quarter in 2014 is in compliance with the following rules: <br />• 4.10.2(1) — The mine waste bank was inspected, on behalf of the person conducting surface coal <br />mining 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 <br />hazard to human life and property and to ensure that all organic material and topsoil have been <br />removed and that proper construction and maintenance are occurring in accordance with the plan <br />submitted under 2.05.3(8) and approved by the Division. <br />• 4.10.2(2)(c) — The engineer considered steepness of slopes, seepage, and other visible factors <br />which could 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 first quarter 2014 Coal Processing Waste Bank <br />Report. <br />Maintenance work that occurred this quarter included refuse placement, spreading and compaction on <br />Refuse Piles 2 -3 -4 and 5A starting near the end of March. Seasonal stockpiling occurred through most of <br />the quarter due to weather conditions. All compaction tests conducted during the 2014 first quarter <br />indicated Proctor densities above 90% as required by Rule 4.10.4(3)(b). No signs of seepage or <br />indications of slope failure were noted and surface drainage facilities are properly conveying surface <br />runoff. The Division does not have any questions or comments regarding the 2014 first quarter Coal <br />Processing Waste Bank Report for Deserado Mine. <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 />