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January 19, 2016 <br />Scott Wanstedt <br />Blue Mountain Energy <br />36O7County Rd. 65 <br />Range(y,CO81648 <br />RE: Deserado Mine, Permit No. C-1981-018 <br />4th Quarter 2015 Professional Certification for the Coal Processing Waste Banks <br />Dear Scott, <br />The Division of Reclamation, Mining and Safety (Division) has reviewed the Coat Processing Waste Bank <br />Report for the fourth quarter of 2015. The report was received on January 15, 2016. 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, onbehalf ofthe person conducting surface coat mining <br />operations, by a qualified registered engeneer. <br />4.10.2(2)(a) The inspection occurred quarterly asrequired bythe Division. <br />4.10.2(2)(b) The inspection included observations and tests necessary toevaluate the potential hazard <br />to human life and property' Loensure that all organic material and topsoi 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 bythe Division. <br />4.10.2(2)(c) The engineer considered the steepness ofslopes, seepage, and other visual factors which <br />would indicate potential failure, and the results offailure with respect to the threat to human life and <br />property. <br />4.10.2(2)(d) Copies ofthe inspection findings are maintained at the mine site. <br />4.10.2(3) There were no potential hazards identified inthe Fourth Quarter 2015Coat Processing Waste <br />Bank Report. <br />Maintenance work conducted this quarter included the placement, spreading and compaction on refuse <br />piles 2'34 and 5A. The Winter Stockpile was started on refuse pih 54. Nine compaction tests were <br />conducted onthe waste banks, aKhad Proctor values higher than 90%asrequired byRule 4.1U.4(])(b). <br />There were nosigns nfseepage orany indications ofslope failure noted. The surface drainage facilities <br />are property conveying the surface runoff from the waste bank areas. <br />This concludes the Division's review of the Fourth Quarter 2015Coat Waste Bank Report for the Deserado <br />Mine. If you have any questions, please contact me at (303)-866-3567 x8144. <br />1313 Sherman Street, Room 215, nenver, CO 80203 P3o] 866.3567F308.832.8106 http://mining.state.co.us U <br />John vv.Hkkentooper, Governor | Mike King, Executive Director | Virginia Brannon, Director « / <br />