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COLORADO <br />ADivision of Reclamation. <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />June 6, 2019 <br />Kurtis Blunt <br />Blue Mountain Energy, Inc. <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit No. C-1981-018 <br />RN -7 and MR -175 Reclamation Liability <br />Dear Kurt, <br />The recent Minor Revision No. 175 (MR -175) was approved and issued on June 3, 2019. <br />The approval of this MR was made after the proposed decision of Permit Renewal No. 7 <br />(RN -7) but not before the renewal has been issued. The reclamation liability increased <br />with RN -7 does not reflect the addition of MR -175 to the permit since the RN has not <br />been issued. Therefore, the reclamation liability has increased to an amount that was not <br />reflected on the decision form of MR -175. The revised liability for RN -7 is <br />$5,801,566.00 and the liability for MR -175 was calculated to be $13,691.00. The current <br />bond held for the Deserado Mine is $5,808,383.08. The combined reclamation liability <br />of RN -7 and MR -175 will be $5,815,257.00. This is $6,873.92 more than the current <br />bond. Blue Mountain Energy will need to submit additional bond monies prior to the <br />issuance of RN -7 at a minimum amount of $6,873.92. <br />If you have any questions, please contact me at (303) 866-3567 x8144. <br />Sincerely, <br />Clayton Wein <br />Environmental Protection Specialist <br />clayton.wein@state.co.us <br />�� pF'CotQ� <br />O <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 l= 303.832.8106 http://mining.state.co.us I ** <br />Jared S. Polis, Governor I Dan Gibbs, Executive Director I Virginia Brannon, Director * * f�* <br />