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<br />BLUE MOUNTAIN ENERGY, INC. <br />Deserado Mine <br />MEMO <br />Date: May 16, 1997 <br />To: Route List <br />From: Gordon Bell <br />Re: Groundwater Sampling <br />Please find attached a copy of the field report by Terramatrir /Montgomery Watson following <br />sampling of (5) ground water monitoring wells. These wells are located over the "B" Seam <br />reserves, and are required under section II.C of BME mine permit to be sampled one year prior to <br />any mining activities in these leases. <br />xc: JeffDubbert <br />Gary Richins <br />Murari Shrestha (WF.4) <br />%u1G) <br />