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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 />April 19, 2018 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit No. C-1981-018 <br />Is' Quarter 2018 Sediment Pond Inspection Report and 1'' Quarter 2018 <br />County Road 65 Subsidence Monitoring Report <br />Dear Scott, <br />The Division of Reclamation, Mining and Safety (the Division) has reviewed the <br />Sediment Pond Inspection Report and the County Road 65 Subsidence Monitoring <br />Report for the 1st Quarter of 2018. The reports were received on April 17, 2018. The <br />Division finds the reports to be in compliance with the following Rules: <br />1'' Ouarter 2018 Sediment Pond Inspection Report <br />4.05.9(17) - All Impoundments are inspected quarterly, by a qualified person designated <br />by the operator, for the appearance of structural weakness and other hazardous <br />conditions. The reports are retained with Scott Wanstedt at the Deserado Mine Office, <br />and copies of the reports are submitted to the Division on a quarterly basis. <br />4.05.9(15)(a) - Burrows on the embankments of the RP -213 Pond were filled in. Seepage <br />at the BD2-5 Pond is being watched closely. The structure is not thought to be unstable; <br />however, if the pond embankment fails, then the material and water would be captured by <br />the BD2-3 Pond. The seepage has been noted in previous quarterly reports sent to the <br />Division. <br />4.05.9(15)(b) - The existing required monitoring procedures were met. <br />4.05.9(15)(c) - The amount of water impounded in the ponds was documented in the <br />report. <br />4.05.9(15)(d) - The existing storage capacity of the impoundments was documented in <br />the report. <br />4.05.9(15)(e) - The l" quarter report did not list any other aspects of the structure <br />affecting stability, or requiring maintenance. <br />IP1313 Shemian Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832,8106 hUp: /I mining. state.co.us 1 <br />♦ de r: i <br />John w. Nickenlooper, Governor i Robert W. Randall, Executive Director i Virginia Brannan, Director * ��„_F,�► ,� <br />'� 1976 • <br />