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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 />April 9, 2008 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Road #65 <br />Rangely, CO 81648 <br />RE: Deserado Mine (Permit No. C-80-001) <br />2007 Annual Reclamation Report Review <br />Dear Mr. Wanstedt, <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- ~i- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has completed its review of the above referenced report received on 19 Feb 2008. The <br />Division finds the 2007 Annual Reclamation Report in compliance of the following Rules: <br />Rule 2.04.13(1) -Received 19 Feb 2008. Please see comments below. <br />Rule 2.04.13(1)(a) -The cover of the ARR includes the name of the permittee, the address, and the <br />permit number. <br />Rule 2.04.13(1)(b) -The ARR identifies 13.70 new disturbed acres during. calendar year 2007. It is <br />noted that these acres reflect SC holes, LW panel B-8, LW8-2, LW8-3, B-vent shaft #2, and SH-1 &2. <br />Rule 2.04.13(1)(c) -The ARR identifies 0.65 new backfilled and graded acres during calendar year <br />2007. It is noted that these acres reflect SC-SL3 and the access road. <br />Rule 2.04.13(1)(d) -The ARR identifies 0.65 new topsoiled acres during calendar year 2007. It is <br />noted that these acres reflect SC-SL3 and the access road. <br />Rule 2.04.13(1)(e) - No disturbed acres were permanently revegetated during calendar year 2007. It is <br />noted that BME interseeded the following locations to enhance the forb component of the plant <br />community: <br />Refuse Area 1 7.0 acres <br />Vent shaft access road and vent sites 3.0 acres <br />East Portal Area 2.9 acres <br />Haul Rd/County Rd intersection 0.5 acres <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />