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L L 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 />July 22, 2008 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 21.5 <br />Denver, CO 80203 <br />RecelveD <br />JUL 2 5 2008 <br />Division of Reciamati <br />Mining and oR, <br />Safety <br />RE: Sediment Pond Inspection Report for 2nd Quarter 2008. <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jason: <br />Enclosed is the Sediment Pond Inspection Report for the 2nd quarter 2008 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from DP-1 <br />other than the Raw Water Lagoon. All discharges remained in compliance. <br />Problems occurred with the discharge structure associated with DP-1 on April 1'. A <br />temporary riser is installed with more permanent repairs planned this summer. DP-1 was <br />cleaned during the quarter. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: