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<br />ENERGY, INC. <br />ASuDsfdWry of <br />Derercl Gr~nfinn & <br />TiakmLsdan fnoperaNr <br />September 15, 2000 <br />Ms. Sandra Whalin <br />Rio Blanco County Courthouse <br />P.O. Box 599 <br />Meeker, CO 81641 <br />RE: Modifications requested for Special Use Application #81-1. <br />Deserado Mine. <br />Dear Sandy: <br />Blue Mountain Energy, Inc. (formerly Western Fuels-Utah, Inc.) requests modifications to <br />Special Use Permit #81-1. Our request is fourfold. First, recognize in the permit that we now <br />operate under the name of `Blue Mountain Energy, ]nc.'. Second, reinstate the Special Use <br />Permit which appears to have expired on July 27, 1989 (see page 5 in the Special Use Petmit <br />Resolution). Third, increase the allowable maximum tonnage to 2.6 million short tons per <br />year (see page 6 in the Special Use Permit Resolution). And fourth, amend the list of <br />buildings and structures to include several additional structures and remove one structure. <br />In 1997 the name of the operating company was changed from Western Fuels-Utah, Inc. to <br />Blue Mountain Energy, Inc. This change was concurrent with Deseret Generation and <br />Transmission Cooperative taking over full operation of the Deserado Mine. Therefore Blue <br />Mountain Energy, Inc. (BME) would like this change to be recognized in the Special Use <br />Permit. <br />The original Special Use Permit Resolution dated July 27, 1981 was valid no later than July <br />27, 1989. This fact has been overlooked until now by all parties involved. The permit was <br />last modified in 1990 with no extensions or reinstatements noted. Therefore, BME requests <br />that the existing permit as amended be reinstated for an indefinite time period or other period <br />acceptable to Rio Blanco County. <br />Special Use Permit #81-1 limits the production of coal to 1.44 million short tons per year. <br />BME requests that the allowable tonnage be increased to a maximum of 2.6 million short tons <br />per year. This increase is requested to enable BME to adequately supply coal to the Bonanza <br />Power Station once plant modifications are made this summer. No additional construction or <br />appreciable increase in manpower wilt be necessary for this increase. Employment levels will <br />remain well below 1995 levels. Improvements in technology, equipment, and manpower <br />efficiency allow [his increase to take place without adverse socio-economic impacts. This <br />change is necessary to ensure the stability and economic viability of our operation. <br />3607 Canny RD p65 <br />Rangely, CO BICdB <br />974675-0300 <br />Far 97Ub75-0399 / <br /> <br />