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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 />November 13, 2015 <br />Scott Wanstedt <br />Blue Mountain Energy <br />3607 County Road 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit C-1981-018 <br />2015 3rd Quarter Discharge Monitoring Reports <br />Dear Mr. Wanstedt, <br />The Colorado Division of Reclamation, Mining and Safety (the Division) finds Deserado Mine's Discharge <br />Monitoring Report for the third quarter of 2015 to be in compliance with the following Rules: <br />Rule 4.05.13(2)(i) - Samples are measured accurately and record water quantity and quality <br />of the discharges from the permit area. <br />Rule 4.05.13(2)(ii) - SDH -3/5 (026-A/MN-26) and the Sewage Treatment Plant (045-A) <br />discharged during the third quarter of 2015. The SDH -3/5 dewatering system had an <br />exceedance of one of the tested parameters. The standard for Total Iron was exceeded. <br />The Division was notified on October 27th, the exceedance occurred in July 2015. Rule <br />4.05.13(2)(ii) states that the Division shall be notified within 5 days after the analytical <br />results indicate noncompliance with a permit condition or applicable standard has <br />occurred. Please notify the division within this required timeframe in the future. Included <br />with the Third Quarter DMRs was a written notice of the exceedance. <br />- Rule 4.05.13(2)(iii) - Discharge Monitoring Reports are received quarterly and filed with the <br />Division within 90 days of the sample collection. <br />045-A discharged during the Third quarter of 2015. The sample measurements were below the maximum <br />allowable values or within acceptable value ranges. <br />Included with the report was an explanation of the violations that had occurred with the parameters <br />tested for SDH -3/5. The SDH -3 dewatering system has been approved by the Division in a minor revision <br />for an expansion of the dewatering system. <br />Please keep the Division in the loop with any decisions made by or discussions with CDPHE about the <br />exceedance at SDH -3/5. <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 />