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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />December 20, 2007 <br />Stephen Glass <br />Bluerock Energy Corporation <br />36 West Main Street <br />Cortez, Colorado 81321 <br /> COLORADO <br /> DIVISION O F <br /> RECLAMATION <br /> MINING <br /> - ~- <br /> SAFETY <br />- ~ ,, ;"-° Bill Owens <br />:I :~~ r <br />~~ <br />Governor <br />.a ~ c,~ - , <br />~ <br />~ ~ <br />~ <br />~ <br />~ Russell George <br />.,~a <br />~ <br />•'~'~ <br />~ Executive Director <br />•~~'~~ Ronald W. Cattany <br />iV:i~,::i,i ~-• ~ ~••'/ Division Director <br /> Natural Resource Trustee <br />Re: J-Birds Mizze, M-2005-050, Succession of Operator, Notice of Start-up azzd Outstaizd Issues. <br />Dear Mr. Glass, <br />The Division of Reclamation, Mining and Safety (DBMS) has received and approved the Succession of <br />Operator (SO) from Rimrock Exploration to Blue Rock Energy. As part of the SO, DBMS has <br />scheduled an inspection of the site for January 4th, 2008 with Mr. Tim Pierce. This inspection also <br />coincides with Blue Rock's notice to the DBMS that it intends to start operations by December 27, <br />2007. <br />The J-Birds permit was approved on July 20, 2006 with DBMS noting two issues. First geo-chemical <br />analysis of waste rock and ore is required prior to deposition of any materials on the surface. Per the <br />approval letter the operator must notify the Division ten (10) days prior to deposition of waste or ore on <br />the surface. As noted the results may require review as a Designated Mining Operation so it is <br />imperative that the analysis be reviewed by DBMS before materials begin to be placed on the surface. <br />This does not preclude begimiing work on the portal as that waste is considered surface rock. But geo_ <br />chemical analvsis should be submitted within the next 30 days to ensure no work stoppa;;e occurs. Staff <br />has discussed different methods of obtaining samples with Blue Rock representative Tiin Pierce. <br />The second issue is that some other local, state and federal permits were applied for but not finalized. <br />The approval letter clearly states that an ongoing BLM process could affect the DBMS permit. If there <br />were any changes by BLM or others that affected our pernit the operator would have to address them <br />through the Technical Revision (TR) process. Specifically the stormwater management plan was <br />changed and structures were not submitted to DBMS for review. Therefore, DBMS is requesting that <br />Blue Rock submit a Technical Revision for stornwater structure approval. A preliminary review of the <br />pernit by the DBMS engineer Allen Sorenson notes four issues that should be addressed in the <br />submission of the TR. <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />