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© TerraMatrix <br />MONTGOMERY WATSON <br />Mining Group <br />May 12, 1997 <br />Mr. Gordon Bell <br />Blue Mountain Energy Inc. <br />PO Box 1067 <br />Rangely, CO 81648 <br />Re: Groundwater Sampling Field Report <br />Dear Gordon; <br />TerraMatrix/Montgomery Watson (TMW) is pleased to have had the opportunity to perform <br />environmental services for Blue Mountain Energy Inc. (BME) at the Deserado Coal Mine. As <br />detailed in our scope of work proposal dated April 17, 1997, the following letter and enclosures <br />provide a summary of the sampling techniques used and field measurements made co retrieve <br />water samples from five deep groundwater monitoring wells. <br />The following activities related to groundwater quality sampling at the Deserado mine were <br />conducted on May 8 and 9, 1997. <br />• Measure static water levels in five existing wells; <br />• Purge water from each well prior to sampling; <br />• Conduct field measurements of temperature, specific conductance and pH; and <br />• Collect water quality samples for laboratory analysis. <br />TMW subcontracted Miller Well Sampling Services out of Hayden, Colorado (Miller). The <br />Miller sampling vehicle has a variety of purging and sampling techniques available which could <br />be used depending on the conditions observed within each well. These techniques include <br />submersible pumps, bailers and nitrogen gas lifting. Afield report was prepared for each day of <br />field work for this project. In addition, detailed information on the activities and results of <br />purging and sampling at each well is provided on field forms. These reports are enclosed and <br />provide the details of the work performed. <br />Decontamination of all equipment entering the wells was completed using an Alconox solution <br />and de-ionized water rinse prior to beginning at the first well. Water levels were measured in <br />five wells, 30-8M, 32-7M, 31-7M, 29-4M and 33-8M and the results are presented in Table 1, <br />Well Sampling Information. The depth to groundwater was measured from the top of the <br />surface casing and ranged from 50 to 240 feet below the top of casing. The steel piping used in <br />the wells was 2 inch diameter with an internal seam weld that caused some difficulty in <br />lowering and retrieving the submersible pump and 2 inch bailers. The depths within each well <br />where casing provided some problem are noted on Table 1 for future use and reference. A <br />P.O. Bax 774018 Tel ~ 970 879 6260 Se rvrnn the IVa rle > 6rvuanmenral NeeAs <br />1475 Pine Grove Road Fax: 970 879 9048 <br />Steamboat Springs, Colorado <br />80477 <br />