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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 />September 19, 2008 <br />Scott Wandstedt <br />Blue Mountain Energy, Inc <br />3607 County Road 65 <br />Rangely, CO 81648 <br />Re: Deserado Mine (Permit No. C-1981-018) <br />Proposed Decision <br />Permit Revision Application No. 6 (PR-6) <br />Dear Mr. Wandstedt: <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 />Enclosed you will find the Division of Reclamation, Mining and Safety's Proposed Decision Package for Permit <br />Revision No. 6 at the Deserado Mine. Notice of the proposed decision will be published in the Rio Blanco Herald- <br />Times as soon as possible. The first publication will initiate the thirty (30) day public comment period for the <br />Division's decision. <br />Documentation must be submitted to the Division demonstrating that a copy of the approved revision application <br />was sent to the Office of Surface Mining and the Bureau of Land Management. The material should be sent within <br />15 days of final approval. <br />Please be advised that federal mine plan approval needs to be obtained from the Office of Surface Mining <br />Reclamation and Enforcement (OSM). OSM approval, in addition to State permit approval, is required, before <br />operations affecting federal coal may commence. <br />Please refer to the Performance Bond heading on the enclosed proposed decision form. If the amount of Bond <br />Held equals or exceeds the Revised Liability, you need not submit additional bond. However, if the Revised <br />Liability exceeds the Bond Held, please submit additional bond or rider to your existing bond that equals or <br />exceeds the Revised Liability. This Permit Revision must not be implemented until this proposed decision <br />becomes final and until any required increase in bond is submitted to and approved by the Division. <br />If you have any questions, please contact me. <br />Sincerely, <br />Jason D. Mus`fck <br />Environmental Protection Specialist <br />JDM/Jrc <br />Enclosure(s) <br />C-PR-08 C1981018 JDM 09192008031152.doe <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines