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POLICY <br />Blue Mountain Energy Inc. recognizes that every item of equipment containing oil <br />or other chemicals at this facility be viewed as having a potential for a spill. Through <br />use of established procedures, the possibility of an oil or chemical spill as the result <br />of normal equipment operation or maintenance will be minimized. All personnel <br />involved in the operation and maintenance of mine equipment will undergo thorough <br />training in these procedures, which are designed to protect both personnel and <br />equipment. While the risk of an oil or chemical spill under normal conditions is very <br />small, the risk of a discharge under other circumstances remains. The possibility of <br />errors, faulty equipment, or sabotage makes it unwise to assume that any item of <br />equipment containing oil or chemicals will not spill it contents in time future. Thus, <br />this plan embodies the approach that even with the measures previously mentioned <br />every oil or chemical-containing item on the Deserado Mine Site represents a <br />potential spill. The purpose of this plan is to insure that if such a spill should occur, <br />employee safety would not be compromised and there would be negligible <br />environmental impact, particularly a discharge into navigable waters*. <br />In addition, all necessary steps will be taken to comply with federal and state <br />regulations which apply to hazazdous waste disposal should a spill involve these <br />types of products. This plan will be reviewed annually by Blue Mountain Energy <br />Inc. in order to update any changes to the enclosed information that would occur over <br />the year. Blue Mountain Energy -Inc. will resubmit this plan if warranted by the <br />Water Quality Control Division of the Colorado Department of Health. <br />* "Navigable waters has been interpreted by the courts to mean "Waters of the United State". <br />PLAN REVIEW <br />DATE <br />SIGNED <br />6/22!98 ] 0 <br />