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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 />October 22, 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 />21d Quarter 2018 Professional Certification for the Coal Processing Waste <br />Banks <br />Dear Scott, <br />The Division of Reclamation, Mining and Safety (the Division) has reviewed the <br />Professional Certification for the Coal Processing Waste Banks for the 2"d quarter of <br />2018. The report was received on July 19th, 2018. The Division finds the report to be in <br />compliance with the following Rules: <br />4.10.2(1) - The coal waste banks were inspected, on behalf of the person conducting <br />surface coal mining operations, by a qualified registered engineer. <br />4.10.2(2)(a) -- The inspection was conducted quarterly as required by the Division. <br />4.10.2(2)(b) - The inspection included observations necessary to evaluate the potential <br />hazard to human life and property, to ensure that all organic material and topsoil have <br />been removed and that proper construction and maintenance are occurring in accordance <br />with the plan submitted under Rule 2.05.3(8) and approved by the Division. <br />4.10.2(2)(c) - The engineer considered the steepness of the slopes, seepage, and other <br />visual factors which would indicate potential failure, and the results of failure with <br />respect to the threat to human life and property. <br />4.10.2(2)(d) - Copies of the inspection findings are maintained at the mine site. <br />4.10.2(3) - There were no potential hazards identified in the 2"d Quarter Professional <br />Certification for the Coal Processing Waste Banks. <br />4 <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us y4' <br />John W. Hickentooper, Governor I Robert W. Ranclati, Executive Director I Virginia Brannon, Director <br />1876 <br />