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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 5[., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8663567 <br />FAX: (303) 832-8106 <br />COLORADO <br />DIVISION OF <br />MIN&RALS <br />GEOLOGY <br />iECLh HATION•MI NING <br />SAFETY•SC IENCE <br />INTEROFFICE Bill Owens <br />Governor <br />MEMORANDUM Russell George <br /> Executive DirecYOr <br /> Ronald W. Cottony <br />"f0: Sandy Brown Division Director <br />~~ Natural Resource Trustee <br />FROM: Jim Stark.~_~~'" <br />SUBJECT: Meeting with Scott Wanstedt <br />DATE: 9 February 2005 <br />On 21 January 2005 Mike Boulay and I met with Scott Wanstedt of Blue Mountain <br />Energy regarding the hydrologic monitoring plan at the Deserado Mine. The main focus <br />of the meeting was to determine if BME's current monitoring plan is sufficient for a <br />planned Permit Revision to expand the mine workings and permit boundary several <br />thousand acres and, if not, what measures need to be implemented to make the plan <br />acceptable. <br />It was determined that BME's current monitoring plan is sufficient for their current <br />operations and the two small (approximately 160 acres) Permit Revisions they are <br />planning on submitting to complete two longwall panels. BME is currently monitoring <br />above, within and below the coal seam they are mining (the B seam). It was decided that <br />one additional well (with two or three separate completions) is needed for the proposed <br />large expansion. <br />The new well(s) will probably be a converted exploration hole, although this has not yet <br />been determined. The two required wells would be above and within the coal seam. The <br />third, the completion below the coal seam, could be eliminated if BME can demonstrate <br />that there have, to date, been no impacts to the hydrologic balance below the coal seam. <br />We decided that if BME wished to pursue this route (not monitoring below the coal <br />seam) they would need to provide a demonstration, satisfactory to the Division, that no <br />hydrologic impacts have occurred below the coal seam and submit their findings as a <br />Technical Revision. <br />It was also decided that if BME was able to successfully demonstrate that there are no <br />hydrologic impacts below the coal seam, they could, in the same Technical Revision, <br />request that the monitoring of the wells completed below the coal seam be reduced or <br />discontinued. This "puts the ball in BME's court" as to what they will do. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />