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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 />Sediment Pond Inspection Report for the Third Quarter of 2015 and the County Road 65 <br />Subsidence Monitoring Report <br />Dear Mr. Wanstedt, <br />The Colorado Division of Reclamation, Mining and Safety (the Division) has reviewed the Sediment Pond <br />Inspection Report for the Third Quarter of 2015 and the County Road 65 Subsidence Monitoring Report. <br />The reports were received on November 5, 2015. The Division finds the reports to be in compliance with <br />the following Rules: <br />3rd Quarter 2015 Sediment Pond Inspection Report <br />4.05.9(14) - All impoundments were inspected by a qualified registered professional engineer and other <br />qualified professional specialists. <br />4.05.9(15)(a) - There were no erosion, instability, structural weakness or other hazardous conditions <br />observed at any of the impoundments. <br />4.05.9(15)(b) - The existing required monitoring procedures were met. <br />4.05.9(15)(c) - The depths of the impoundments were documented in the report. <br />4.05.9(15)(d) - The existing storage capacity of the impoundments was documented in the report. <br />4.05.9(15)(e) - The third quarter report documented burrows on RP -2/3, RP -4 and RRS had been filled in. <br />A small vertical hole on the top of the embankment on DP -1 had been repaired, noted in previous 2015 <br />quarterly reports. <br />3rd Quarter 2015 County Road 65 Subsidence Monitoring Report <br />2.05.6(6) - The report documented that long wall mining did not occur under County Road 65 during the <br />quarter. Superficial cracking was observed previous to the third quarter, no damage to the road was <br />significant enough to need repair or effect traffic. <br />This concludes the Division's review of the Sediment Pond Inspection Report for the Third Quarter of 2015 <br />and the County Road 65 Subsidence Monitoring Report. If you have any questions, please contact me at <br />(303)-866-3567 x8144 or clayton.wein@state.co.us. <br />pF C ZO <br />OF 01 <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 876 �j <br />