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DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675-4300 <br />fax (970)675-4399 <br />Dear Jim: <br />R~~~i#1ED <br />MAY 1 12006 <br />May 8, 2006 <br />Mc Jim Burnell <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Uivisron o/ Minerals antl Gedapy <br />RE: Professional Certification for the Coal Processing Waste Banks <br />Deserado Mine. <br />Permit No. C-1981-018 <br />During the first quarter of 2006, qualified persons working under my direction and 1 conducted a series <br />of compliance inspections on the active coal processing waste banks located within the Deserado <br />permit area. These inspections were conducted roughly on a bi-weekly basis. <br />I am a professional engineer registered in the State of Colorado and my experience fulfills the <br />requirements of the Colorado Surface Coal Mining Reclamation Act. <br />The purpose of these inspections and subsequent certification is to ensure proper construction of the <br />refuse piles and to satisfy the requirements of Rule 4.10.2 of the Colorado Mined Land Reclamation <br />Board. <br />INSPECTION OF ACTIVE AREAS 2-3, 4 and Sa <br />There are no apparent points of seepage, or indications of slope failure on the active piles. The surface <br />drainage facilities were adequately maintained and were working properly to convey surface runoff. <br />Sediment control structures need periodic maintenance and are cleaned out as conditions warrant. <br />The following maintenance work was completed since the last quarterly report: <br />1. New material was spread and compacted. <br />2. Stockpiled material was actively spread and compacted. <br />3. Refuse Area surfaces were conditioned for spreading refuse. <br />4. Maintained perimeter ditches. <br />Our permit requires no sub-drain system, as geotechnical investigations for the disposal site revealed <br />no groundwater present. <br />Refuse is spread and compacted in lifts not exceeding 24" in depth. Typically refuse is spread much <br />thinner producing 6" to 8" lifts. <br />Permanent out slopes remain at approximately 90% complete on the toe of sub-area 2-3 and 4. The <br />infill between these sub-areas is complete. The slopes appeared stable with some localized erosion <br />noted. <br />