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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 />July 13, 2016 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Road 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit C-1981-018 <br />2016 1st Quarter Discharge Monitoring Report <br />Dear Scott, <br />The Colorado Division of Reclamation, Mining and Safety (the Division) has finished its review of the 2016 <br />1St Quarter Discharge Monitoring Report (DMR). The report was received on May 3, 2016. The Division <br />finds the report to be in compliance with the following Rules: <br />Rule 4.05.13(2)(1) - Samples are measured accurately and record the quality and quantity of the <br />water discharged from the permit area. <br />Rule 4.05.13(2)(ii) - Discharges occurred from SDH -3/5 (Outfall 026-A, 026-W, and MN -26) and <br />the Sewage Treatment Plant (Outfall 045-A) during the 11t quarter of 2016. The samples <br />collected from 045-A were below the maximum allowable values or within acceptable value <br />ranges. 'SDH -3/5 exceeded the acute WET standards during the 1st quarter of 2016. The <br />Division received the 90 day status update on February 9, 2016. Information in the update <br />stated the last test was conducted on December 18, 2015. The tests continued to exhibit <br />toxicity to Daphnia magna and Fathead minnow. A new WET test was scheduled to start on <br />February 11, 2016 to test the samples with a 1:1 ratio with White River water. The Deserado <br />Mine will continue to follow Part I.A.2.d of the CO -0038024 NPDES Permit to address these <br />exceedances. Please keep the Division informed of any decisions made by or discussions with <br />CDPHE about the exceedances at SDH -3/5. <br />- Rule 4.05.13(2)(iii) - Discharge Monitoring Reports are received on a quarterly basis and filed <br />with the Division within 90 days of the sample collection. <br />This concludes the Division's review of the 2016 1st Quarter Discharge Monitoring Report. If you have any <br />questions, please contact me at (303)-866-3567 x8144. <br />c)Y Cp.' <br />O <br />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 * ; 7) <br />