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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman SC, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />June 20, 2007 <br />Mr. Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Road #65 <br />Rangely, CO 81648 <br />RE: Review of 2006 Annual Reclamation Report <br />Deserado Mine (Permit C-1981-018) <br />Dear Mr. Wanstedt: <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, )r. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />We have completed our review of the 2006 Annual Reclamation Report for the Deserado Mine. <br />Please respond to the following, as necessary. <br />The mine reported no additional acres disturbed for the 2006 calendar year. Additionally, no <br />disturbed acres were backfilled and graded, topsoiled, or seeded during the 2006 calendar year. <br />The reporting form is accurate with the backfilled and graded acres added to the acres in long <br />term facilities equal to the total disturbed acres for the site (with no acres reported as active <br />mining). A map at a I inch=2000 feet scale was included depicting the year and location of aeeas <br />previously seeded. An appendix included notations from visual surveys of areas seeded within <br />the last two-three years. <br />The Division requests that BME include in next years report an accounting of disturbed <br />acreage that BME remains liable for until final bond release. Due to the nature of <br />underground mining, disturbed areas tend to be numerous, spread out, small, and isolated. <br />Understanding the size and extent of all the areas including sediment ponds, roads, degas <br />pads, vent shafts, and facilities in general becomes important, especially as mines <br />approach the end of the mine life and contemplate bond release. Division records show <br />the acreage approved for disturbance at Deserado is 423.33 acres after TR-63 yet <br />Deserado reports 425.64 acres disturbed. While this is likely a small error occurring from <br />past revisions to the permit, nonetheless it brings to light the importance of having a <br />detailed record of the entire disturbance [hat is the liability of BME to reclaim and/or <br />bond release. Typically this is done by grouping like disturbances together and assigning <br />some kind of name or identifier to each disturbance for identification. Showing these <br />areas on a map is also important and may require using a map scale of 1 inch =500 feet <br />for smaller areas. Your input on how we might achieve this goal for next year's reporting <br />is encouraged. <br />We have no further questions at this time. The report meets the requirements of Rule 2.04.13. <br />Thank you for your diligence in completing your monitoring and reporting requirements. <br />Sincer y, ~/~ ` <br />K t Gorham G <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango ARive and Inactive Mines <br />