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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 11, 2018 <br />Mr. Clayton Wein <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 2018. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Clayton: <br />RECEIVED <br />OCT 112018 <br />Division of Reclamation, <br />Mining & Safety <br />Enclosed is the Sediment'Pond Inspection Report for the 3rd quarter 2018 for the Deserado Mine. The <br />only discharges that occurred during the quarter was from the B -seam dewatering system, D -seam <br />dewatering system, and Raw Water Lagoon. <br />Pumping to the `D -seam' dewatering pond system were reinitiated during late November. Outflows <br />from the `B -seam' dewatering pond system were suspended in late June 2017 when pumping was <br />directed to the second pond system. Flows have been diverted back to the first system with outflow <br />restarting near the end of the quarter. <br />The spillway for the middle pond of the SDH -3 pond system was eroded when the SDH -3 discharge <br />line became dislodged. The line was moved to the very lowest riprap and no longer utilizes the <br />spillway channel of the middle pond. The middle and upper ponds are no longer active with adequate <br />treatment being achieved by the lower pond. <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 />