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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 />September 15, 2014 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc <br />3607 County Road 65 <br />Rangely, CO 81648 <br />Re: Deserado Mine (Permit No. C- 1981 -018) <br />Minor Revision 160 (MR -160) <br />Adequacy Review <br />Dear Mr. Scott Wanstedt: <br />The Colorado Division of Reclamation, Mining and Safety (Division) has received the Blue <br />Mountain Energy, Inc. (BME) submittal of Minor Revision 160 for the Deserado Mine. The <br />revision was received on September 3, 2014 and deemed completed on September 12, 2014. MR- <br />160 proposes to add a second nitrogen plant and associated facilities. The Division has the <br />following comment: <br />Rule 3.02.2 — Determination of Bond Amount <br />1. The Division has performed a cost estimate for the addition of a second nitrogen plant. The <br />total value of this estimate is $6,747.62 (see attached cost estimate). The Division's cost <br />estimate is consistent with previous cost estimates approved by both the Division and BME. <br />The Division respectfully requests a response from BME with any questions regarding the <br />cost estimate or an acceptance of the Division's estimate. <br />If you have questions or need additional information, please contact me. <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 />