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COLORADO <br />-AV <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 28, 2015 <br />Scott Wanstedt <br />Blue Mountain Energy <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit No. C-1981-018 <br />2014 Annual Hydrology Report <br />Dear Mr. Wanstedt, <br />The Division received the 2014 Annual Hydrology Report (AHR) on January 29, 2015. Thank you for your <br />timely submittal. The Division finds the 2014 AHR is in compliance with the following Rules: <br />Rule 4.05.13(4)(a) - The data collected for the 2014 AHR is kept and maintained at the Deserado Mine <br />office. <br />Rule 4.05.13(4)(b) - The 2014 AHR is compiled from hydrologic data analysis from the monitoring period of <br />October 1, 2013 to September 30, 2014. <br />Rule 4.05.13(c)(i), (ii), (iii) - The 2014 AHR was submitted to the Division by the determined date on <br />which the permitee and the Division agreed to. The report included an interpretation of the collected <br />data and identified mining related impacts to the hydrologic balance. <br />The 2014 data supports the predictions of the Probable Hydrologic Consequences (PHC) of the Deserado <br />Mine permit. The following is a review of the 2014 data as per the PHC: <br />- The impact on the quantity of water to the White River was minimal, only 121,382,510 gallons or <br />373 acre-feet was withdrawn from the White River in the 2014 water year. This is less than the <br />predicted 552 acre-feet. Groundwater inflow is usually 20 to 40 gallons per minute (gpm), <br />occasional increased inflows occur when a localized perched water table is encountered. Other <br />inflows to the mine are the result of water from leaks and water line brakes. The total <br />incidental inflow of water into the mine was 7.41 gpm in the 2014 water year. The value is in <br />the predicted range of 5 to 10 gpm. In May of 2012 a dewatering pump system was installed to <br />pump excess water captured in the underground mine to the surface. Water pumped to the <br />surface from the B seam was 13,631,834 gallons or 25.94 gpm on average. <br />Predicted by the PHC, Monitoring wells in close proximity to the mine workings show a decrease <br />in piezometric levels. One well, 29-4U, was subsided in 2013 and the well became blocked. <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 />01 <br />* <br />1878 <br />