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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND <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 />June 6, 2008 <br />Stephen Glass <br />Bluerock Energy Corporation <br />10 West Main Street, Ste. 110 <br />Cortez, CO 813210000 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <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 />Re: DRMS File # M2005050 - New Requirements - Designated Mining Operation (DMO) Status - <br />Implementation of 11111161 <br />Dear Mr. Glass: <br />On May 20, 2008, the Governor signed into law House Bill (HB) 1161. A copy of the bill is attached for your <br />convenience. The bill made various chinges to the Mined Land Reclamation Act, § 34-32-101, C.R.S., <br />including a change to the definition of D lsignated Mining Operation (DMO). § 34-32-103 (3.5), C.R.S. <br />Under HB 1161, all uranium mines are'' now defined as DMOs. Specifically, the new definition of DMO <br />includes mining operations where "Uranium is developed or extracted, either by in situ leach mining or by <br />conventional underground or open mining techniques. A uranium mining operation may seek an exemption 11 from designated mining operation status in accordance with section 34-32-112.5 <br /> (2)". § 34-32-103 (3.5) (a) <br />(III), C.R.S. <br />HB 1161 applies to all "mining applications currently filed or filed on or after the effective date of this act and <br />to mining operations currently permitted or permitted on or after the effective date of this act". Thus, the new <br />11 <br />re uranium permit applications and all existing and future uranium <br />definition applies to all existing and futu <br />11 <br />operations. Accordingly, the above-referenced mine is now defined as a DMO. The Mined Land Reclamation <br />Act sets forth requirements for DMOs that are in addition to the requirements applicable to all mining <br />operations. §§ 34-32-112.5 and 116.5, C.;R.S. <br />Ronald W. Cattany, Director of the Division of Reclamation, Mining and Safety, previously issued a statement <br />regarding the anticipated implementations of DMO requirements for uranium mines now defined as DMOs by <br />HB 1161. The statement is attached for your review. The attached statement will guide the procedural <br />implementation of DMO designation and 'the related permitting requirements. <br />Thank you for your cooperation in this matter. Please contact us with any questions. <br />Sincere. <br />riY <br />4Inavi <br />te Director, , Office of Mined Land Reclamation <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango <br />Office of <br />Active and Inactive Mines