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~} . <br />III IIIIIIIIIIIII III <br />Blue Mountain Energy, Inc. <br />Subsidiary of Deseret Generation & Transmission <br />8722 South 300 West <br />Mazch 13, 1997 <br />Sandy, Utah 84070 <br />Phone:801-566-1238; Fax:801-562-6302 <br />Mr. Larry Routten <br />State of Colorado Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Subject: <br />Dear Mr. Routten: <br />Coal Reclamation Bonds for Deserado Mine <br />As we have discussed previously, Blue Mountain Energy (BME) has been in the process of <br />changing the name on the coal reclamation bonds for the Deserado Mine from Western Fuels- <br />Utah (WFU) to BME. BME has been working on obtaining a corporate surety bond to replace all <br />of the treasury notes, certificates of deposit and surety bonds now in place as security for the <br />Deserado Mine coal reclamation bonds. Obtaining the corporate surety bond has taken much <br />longer than anticipated. Therefore, we have proceeded to have the existing treasury notes and <br />certificates of deposit changed from WFU to BME. <br />It appeazs that it will still take several weeks to change the existing surety bonds from WFU to <br />BME. Therefore, BME is proceeding to obtain another treasury note to replace the two existing <br />surety bonds which total $657,525. We will provide DMG with the replacement bond with a <br />treasury note as security as soon as it is available. <br />Enclosed are the completed bond forms which reflect the change in name from WFU to BME <br />for the following bonds: <br />Financial Institution <br />First Union National Bank <br />Zions First National Bank <br />Rio Blanco State Bank <br />Rocky Mountain State Bank <br />Rocky Mountain State Bank <br />Tvoe of Bond Amount <br />Treasury Note $5,300,000.00 <br />Treasury Note $ 115,000.00 <br />Certificate of Deposit $ 100,000.00 <br />Certificate of Deposit $ 25,000.00 <br />Certificate of Deposit $ 10,000.00 <br />Also enclosed is a letter which each of the above listed financial institutions countersigned <br />acknowledging the name change. <br />RECEIVED <br />MAR 141997 <br />Diviswn ur n~uiCiaS S Ueoioyy <br />We appreciate DMG's patience with BME in making the necessary arrangements to change the <br />bonds from WFU to BME. <br />