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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 />January 11, 2017 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Sediment Pond Inspection Report for 4th Quarter 2016. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jason: <br />FEB � 6 �-o1i <br />DNIS1®t4 OF f�E��MAT(ON <br />t� 0 tae <br />Enclosed is the Sediment Pond Inspection Report for the 4th quarter 2016 for the Deserado Mine. The <br />only discharges that occurred during the quarter was from the Raw Water Lagoon and the B -seam <br />dewatering ponds. Outflows within the `D -seam' dewatering pond system was suspended late in <br />September due to pump/pipe issues. <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 occurred at the very end of this quarter. No impacts were <br />observed yet but superficial cracking is expected with no damage significant enough to warrant repair <br />or to effect traffic. <br />If you have any questions, please call me at (970)675-4322. <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: <br />