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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 /> January 29,2020 <br /> Kurt 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 /> 4" Quarter 2019 Sediment Pond Inspection Report and 4" 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 Pond Inspection Report and the County Road 65 Subsidence Monitoring <br /> Report for the 41h Quarter of 2019. The reports were received on January 27, 2020. The <br /> Division finds the reports to be in compliance with the following Rules: <br /> 41h Quarter 2019 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 at the Deserado Mine Office, and copies of the <br /> reports are submitted to the Division on a quarterly basis. <br /> 4.05.9(15)(a) —No indications of seepage, erosion or animal burrows were identified in <br /> the 4th quarter. Spillways for the ponds were noted to be in good repair and functional. <br /> SDH-3M has been listed as having channel erosion and a defective spillway for multiple <br /> reports. The pond has not been used since this issue was observed. The SDH-3L pond <br /> substitutes for the SDH-3M pond. <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 4th quarter report did not list any other aspects of the structure <br /> affecting stability, or requiring maintenance. <br /> I I� o <br /> 1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us * *' <br /> Jared S. Polis, Governor I Dan Gibbs, Executive Director I Virginia Brannon, Director <br />