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DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675-4300 <br />fax (970)675-4399 <br />July 27, 2016 oc <br />A) <br />Mr. Clayton WeinE��p�1.ATlori <br />Division of Reclamation, Mining and Safety ��D SAFET( <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Sediment Pond Inspection Report for 2nd Quarter 2016. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Clayton: <br />Enclosed is the Sediment Pond Inspection Report for the 2nd quarter 2016 for the Deserado Mine. The <br />only discharges that occurred during the quarter was from the Raw Water Lagoon, SDH -3 Ponds and <br />DP -1. Outflows within the `B -seam' dewatering pond system did not result in a discharge out the <br />regulated outfall from the Last Chance Pond (BD -LC). <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 did not occur this quarter. Only superficial cracking was <br />previously observed with no damage significant enough to warrant repair or to effect traffic. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: <br />