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/oF:cOto ~~'~~; COLORADO DIVISION OF MINERALS AND GEOLOGY ' gave ` 1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866-3567 JAN 23 200!i Permit Date: July 27, 2004 Permit Expiration Date: July 27, 2009 Division of Minerals 6 Geology Permit No. C-1981-018 THIS PERMIT is issued by the Division of Minerals and Geology, Department of Natural Resources, State of Colorado. Blue Mountain Energy, Inc ("operator") desires to conduct a mining operation known as the Deserado Mine for the purpose of extracting coal. II. On January 4, 2005 the Division of Minerals and Geology ("the Division') approved the operator's application for this permit, fixed the amount of bond and directed that this permit be issued upon the filing with the Division of bond in the amount so fixed in form and substance approved by the Division, and such bond has been so famished. III. On October 20, 2004 the Division made the following findings: (a) The permit application is accurate and contains all information required under C.R.S, 34-33-101 et seq. and regulations promulgated thereunder and that all the requirements of Article 33 of Title 34, C.R.S. ("such article") for the issue of a permit have been complied with; (b) The applicant has demonstrated that reclamation as required by such article can be accomplished under the reclamation plan contained in the permit application; (c) The assessment of the probable cumulative impact of all anticipated mining in the azea on the hydrologic balance specified in Section 34-33-110(2)(1) has been made by the Division and the proposed operation thereof has been designed to prevent material damage to the hydrologic balance outside the permit azea; (d) Granting the permit will not conflict with any designation decision issued pursuant to Section 522 of the Federal "Surface Mining Control and Reclamation Act of 1977," as