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COLORADO <br />n Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />August 10, 2015 <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 165 (MR -163) <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 165 for the Deserado Mine. The <br />revision was received on August 4, 2015 and deemed completed on August 10, 2015. MR -165 <br />proposes to four exploration boreholes and associated road as well as relocation of RS -12L. The <br />Division has the following comment: <br />Rule 3.02.2 — Determination of Bond Amount <br />1. The Division has performed a cost estimate for addition of four exploration holes and <br />associated roads. The total value of this estimate is $4,179.02 (see attached cost estimate). <br />The Division's cost estimate is consistent with previous cost estimates approved by both the <br />Division and BME. The Division respectfully requests a response from BME with any <br />questions regarding the 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 />