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Midterm Review (MT -7) <br />Deserado Mine <br />C-1981-018 <br />This document presents the results of Midterm Permit Review MT -7 of the Blue Mountain <br />Energy, Inc.'s (BME) Deserado Mine. The Colorado Division of Reclamation, Mining and <br />Safety (Division) conducted this review for the purpose of fulfilling the requirements of the <br />Colorado Surface Coal Mining Reclamation Act and the Regulations of the Colorado Mined <br />Land Reclamation Board for Coal Mining. <br />This Midterm Review was conducted to fulfill the requirements of Sections 2.08.3, 2.06.2(10), <br />2.06.3(4)(a), 2.06.5(3), 2.06.7(5) and 3.02.2(4). <br />Section 2.08.3 of the Regulations requires that the Division conduct a review of each permit <br />issued, prior to its midterm. Based on this review, for good cause shown, the Division may <br />require reasonable revisions or modifications of the permit provisions to ensure compliance with <br />the Act and Regulation. <br />Section 3.02.2(4) requires that the Division review the amount of the bond and the terms of <br />acceptance of the bond every 2 1/2 years. <br />Sections 2.06.2(10), 2.06.3(4)(a), 2.06.5(3) and 2.06.7(5) require that experimental practices, <br />mountaintop removal variances, variances from approximate original contour (AOC) for steep <br />slope mining and variances from contemporaneous reclamation for combined surface and <br />underground mining, respectively, be reviewed by the Division where applicable during the <br />Midterm Review. <br />This Midterm Review consisted of a detailed review of the following document: <br />• The Deserado Mine permit application, including stipulations and responses <br />• All revisions made to the permit since the issuance of the permit <br />• The Deserado Mine annual reclamation and hydrology reports <br />• Bond surety and reclamation cost estimate <br />• The Division findings documents <br />• The Division's inspection reports <br />• Any notices of violations since the issuance of the permit <br />SECTION I — HISTORY <br />The Deserado Mine is an underground mine operation located in Rio Blanco County and Moffat <br />County, approximately nine miles northeast of the town of Rangely, Colorado along County <br />Road 65 near the Kenney Reservoir. The Deserado Mine began was permitted under the <br />permanent state regulatory program on July 27, 1981. The original permittee was Western <br />Fuels -Utah, Inc. The permit has been transferred once to Blue Mountain Energy, Inc in 1997. <br />Deserado Mine -2- 1/26/2017 <br />