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History of Permit C-81-018 <br />Origin of C-81-018 <br />Western Fuels-Utah, Inc. submitted an application for a new permit on March 12, 1980. The <br />Division (then called the Mined Land Reclamation Division) issued permit C-81-018 on July 27, <br />1981. <br />Transfer of Ownership to Blue Mountain Energy Inc. <br />On May 28, 1997 the Division approved a transfer of ownership of the Deserado Mine from <br />Western Fuels-Utah, Inc. to Blue Mountain Energy, Inc. <br />History <br />The Deserado Mine is an active underground mine operation located in Rio Blanco County, <br />approximately nine miles northeast of Rangely, Colorado along County Road 65 near Kenney <br />Reservoir. <br />Mining operations during previous permit terms have utilized longwall extraction and room and <br />pillar techniques to extract coal from the "D" Seam. "D" Seam mining within the permit area <br />was completed in 1999, with operations shifting to the underlying "B" Seam, beginning with <br />development mining in 1998 and 1999, and initiation of longwall extraction in early 2000. <br />Operational status was most recently reviewed and summarized by the Division in Permit <br />Revision 05, dated 19 July 2005. Status and summary of all revisions received and approved by <br />the Division since Permit Revision 05 are summarized below. <br />Revisions to the Permit <br />Minor Revisions and Technical Revisions which have been made to the Deserado Mine permit <br />since the last permit revision (PR-05) are listed below. <br />Minor Revisions: <br />Revision No. Approval date Nature of revision <br />MR129 7/22/2005 New rock Dust Hole <br />MR130 5/02/2006 Drilling of Three Degas Boreholes <br />MR131 7/24/2006 Expansion of Weed Management Plan <br />MR132 9/11/2007 B-Vent Powerline Re-Routing <br />MR133 3/12/2008 Nitrogen Injection Holes and Road <br />MR134 5/08/2008 Addition of Return Shaft RS-4 and Relocation of LWB10-1 <br />MR135 7/22/2008 Relocation of Return Shaft RS-4 and LWB10-1 <br />MR136 8/15/2008 Construction of Nitrogen Injection Holes and Pipeline <br />Deserado Mine 5 September 19, 2008