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C 0 L 0 R A D 0 <br /> Division of Reclamflon, <br /> n` Miming and Safety <br /> Department of Natural Resources <br /> 1313 Sherman Street, Boom 215 <br /> Denver,CO 80203 <br /> September 11, 2019 <br /> Kurt Blunt <br /> Blue Fountain Energy, Inc. <br /> 3607 County lid. 65 <br /> Fangelr, CO 8 1648 <br /> R : I eser do Mine, Permit No. C-19 1-01 <br /> 1-51 Quarter 2019 Sediment Pond Inspection Report and 1st Quarter 2019 <br /> County Road 65 Subsidence Monitoring Report <br /> Dear Kurt, <br /> The Division of Reclamation, Mining and Safety (the Division) has reviewed the <br /> Sediment fond Inspection Report and the Counter Toad 65 Subsidence Monitoring <br /> Report for the 1" Quarter of 2019. The reports were received on July 29, 2019. The <br /> Division finds the reports to be in compliance with the following Rules: <br /> 1s u rter 2019 Sediment Pond Inspection Report <br /> 4.0 .9 1'7 —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 at the Deserado Mine Office, and copies of the <br /> reports are submitted to the Division on a quarterly basis. <br /> 4,0 .9 1 a —No indications of seepage, erosion or animal burrows were identified in <br /> the 1s' quarter. Spillwa ys for the ponds were noted to be in good repair and functional. <br /> 4.0 .9 1 b —The existing required monitoring procedures were 'net. <br /> 4.0 .9 1 e -The amount of water impounded in the ponds was documented in the <br /> report. <br /> 4.0 .9 1 d —The existing storage capacity of the impoundments was documented in <br /> the report. <br /> 4.0 .9 1 e —The l" quarter report did not list any other aspects of the structure <br /> affecting stability, or requiring maintenance. <br /> During the I" quarter, the B Seam li ewatering System No. 1, the SDH-3 D Seam <br /> ewatering System, and the Flaw water Lagoon discharged. <br /> 04 <br /> 1313 Sherman Street,Room 215,, Denver,CO 80203 P 303.866.3567 F 303.83 .810 http: min1ng.state.co.u s <br /> Jared S.Polls Governor Dan Gibbs, Executive Director I Virginia Brannon, Director . " <br /> 187 <br />