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November 12, 2015 <br />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 />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 />3rd Quarter 2015 Professional Certification for the Coal Processing Waste Banks <br />Dear Mr. Wanstedt, <br />The Division of Reclamation, Mining and Safety (Division) has reviewed the Coal Processing Waste Bank <br />Report for the third quarter of 2015. The report was received on November 5, 2015. The Division finds <br />the report to be in compliance with the following Rules: <br />4.10.2(1) - The coal waste banks were inspected, on behalf of the person conducting surface coal mining <br />operations, by a qualified registered engeneer. <br />4.10.2(2)(a) - The inspection occurred quarterly as required by the Division. <br />4.10.2(2)(b) - The inspection included observations and tests necessary to evaluate the potential hazard <br />to human life and property, to ensure that all organic material and topsoil have been removed and that <br />proper construction and maintenance are occurring in accordance with the plan submitted under Rule <br />2.05.3(8) and approved by the Division. <br />4.10.2(2)(c) - The engineer considered the steepness of slopes, seepage, and other visual factors which <br />would indicate potential failure, and the results of failure with respect to the threat to human life and <br />property. <br />4.10.2(2)(d) - Copies of the inspection findings are maintained at the mine site. <br />4.10.2(3) - There were no potential hazards identified in the Third Quarter 2015 Coal Processing Waste <br />Bank Report. <br />Maintenance work conducted this quarter included the placement, spreading and compaction on refuse <br />piles 2-3-4 and 5A. Twelve compaction tests were conducted on the waste banks, all had Proctor values <br />higher than 90% as required by Rule 4.10.4(3)(b). There were no signs of seepage or any indications of <br />slope failure noted. The surface drainage facilities are properly conveying the surface runoff from the <br />waste bank areas. <br />This concludes the Division's review of the Third Quarter 2015 Coal Waste Bank Report for the Deserado <br />Mine. If you have any questions, please contact me at (303)-866-3567 x8144. <br />or- COCp <br />I ! 7 o <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 * I\876 * *' <br />