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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 />October 26, 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 3rd Quarter 2017. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jason: <br />Enclosed is the Sediment Pond Inspection Report for the 3rd quarter 2017 for the Deserado Mine. The <br />only discharges that occurred during the quarter was from the Raw Water Lagoon. <br />Outflows within the `D -seam' dewatering pond system was suspended late in September 2016 due to <br />pump/pipe issues. Outflows from the `B -seam' dewatering pond system were suspended in late June <br />2017 when pumping was directed to the second pond system. <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 did not occur this quarter. Only superficial cracking from <br />prior mining occurred 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 />