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DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 61648 <br />(970)675-4300 <br />fax(970)675-4399 <br />October 22, 2015 <br />Permit Number C00038024 <br />Outfall #026 — Discharge Numbers 026-A and 026-W <br />Blue Mountain Energy, Inc. <br />3607 CR 65 <br />Rangely, CO 81648 <br />970-675-4322 <br />COMMENTS AND EXPLANATION OF VIOLATIONS AND OTHER ISSUES <br />Monthly total iron <br />It is not clear how monthly averages were to be reported on the quarterly DMRs. Please advise how you <br />would like these to be reported in the future. <br />The average monthly total iron measurements were: <br />July 3.24 mg/L This exceeded the permit standard of 3.0 <br />August 2.81 mg/L <br />Sept 2.72 mg/L <br />Quarterly average 2.92 mg/L <br />The average monthly Solids, total suspended were: <br />July 26.5 mg/L (40 and 13) <br />August <13 mg/L (<10 and 16) <br />Sept. <12 mg/L (<10 and 14) <br />Quarterly average <17.2 mg/L <br />To reduce the chance of future exceedances we will be expanding the settling pond system above the <br />outfall #026. We permitted this expansion through the Colorado Division of Minerals and Geology and <br />the USDI Bureau of Land Management. The expansion should occur this fall. Flows have been limited to <br />help reduce the chance of elevated iron in the discharge. <br />Settleable Solids — sampling frequency <br />During August we only sampled one time for this parameter. Due to holding times we selected to send <br />the samples to an alternate lab in Grand Junction. The first sample was scheduled for August 181h to <br />allow shipping along with the BOD sample for #45. Prior to sampling the pump controller failed and we <br />were not able to collect this first scheduled sample. A new controller was needed and wasn't installed <br />until around August 281h. The first and only Settleable Solids sample was subsequently collected on <br />