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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303J 866-3567 <br />FAX: (303) 832-8106 <br />October 12, 2007 <br />Scott C. Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 CR 65 <br />Rangely, CO 81648 <br />RE: Blue Mountain Energy, Inc. <br />Notice of Intent to Explore (NOI) <br />File No. X-2007-230-00 <br />Dear Mr. Wanstedt, <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- bc- <br />SAFETY <br />Bill Ritter, jr. <br />Governor <br />Harris D. Sherman <br />Executive DirecYOr <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has reviewed the above-referenced NOI in accordance with the applicable provisions of <br />the Colorado Surface Coal Mining Act ("Act") and the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining ("Regulations), and has the following comments. <br />Notification of Completeness [Regulation 2.02.2] <br />Notice of Intent No. X-2007-142-11 is Complete <br />Determination of Proposed Activities as Coal Exploration [Regulations 2.02.2(3) and 1.04(22)] <br />The activities described in the Notice of Intent qualify as "coal exploration" as defined at Regulation <br />1.04(22). The coal exploration activities described will involve removal of 250 tons or less of coal. <br />Determination of Substantial Natural Land Surface Disturbance [Regulations 2.02.2(3) and <br />1.04(127)] <br />The coal exploration activities described will substantially disturb the natural land surface, as defined <br />at Regulation 1.04(27). <br />Determination of Amount of Performance Bond [Regulation 3.05.2(1)] <br />The Division has prepared a preliminary estimate of the amount of performance bond sufficient to <br />assure the satisfactory reclamation of the proposed coal exploration disturbance if, in the event of bond <br />forfeiture, the work had to be performed by the Division through independent contractors. The amount <br />of performance bond calculated was $4,520.00. The Division is prepared to issue an Acceptance of <br />Notice of Intent upon receiving bond in the amount of $4520.00. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />