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CO-0038 <br />Apri18, 2008 <br />Mr. Dan Hernandez <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Blue Mountain Energy Inc. - "Deserado" Mine -Permit Revision PR-06, Permit Area <br />Expansion <br />Dear Mr. Hernandez: <br />This is in response to the Colorado Division of Reclamation, Mining and Safety's (CO-DBMS) <br />Apri17, 2008, request for a decision, under 30 CFR 906.30, whether the above subject permit <br />revision constitutes a mining plan modification. <br />Mining plan approvals by the Secretary of the Interior are required under the Mineral Leasing <br />Act of 1920, 30 U.S.C. 181, et seq. before coal mining can occur on Federal lands. This letter <br />serves to document OSM's determination whether or not a mining plan approval from the <br />Secretary is required for the above permitting action. <br />OSM's review of PR-06 has determined that it proposes to approximately 760 acres of Federal <br />lease C-8424 in Township 3 North, Range 101 West, 6t" PM, Section 19: E'/ZSE'/4, SW'/4SE'/4; <br />Section 20: S''/z, S'/ZNW'/4, S'/zN%2NW'/4; and Section 28: NE'/4, N%zNW'/4, N'/ZS'/ZNW'/4 to the <br />approved permit for the Deserado mine, Colorado State permit C-1981-018. <br />Based on a review of the activities associated with the permit revision, OSM has determined that <br />the proposal meets the requirements of 30 CFR 746.18(d)(3)(ii). Therefore, the proposed permit <br />revision does not constitute a mining plan action requiring Secretarial approval. <br />OSM's decision was based solely upon the Federal regulations under 30 CFR PART 746 and not <br />the technical aspects of the revision application itself. Consequently, OSM's decision does not <br />relieve CO-DBMS from coordinating the review and approval of PR-06 with other Federal <br />agencies for compliance with other Federal regulations. <br />Should you have any questions regarding this letter, please contact me at (303) 293-5038. <br />Sincerely, <br />Carl R. Johnston <br />Natural Resource Specialist <br />