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Water Users Association No. 1 <br />P.O. Box 1317 <br />Rangely, Colorado 81648 <br />(Property immediately adjacent to Deserado Mine permit area was sold to Water Users <br />Association No. 1. See Map 2.) <br />Subsurface: <br />Blue Mountain Energy, Inc. <br />10714 South Jordan Gateway, Suite 300 <br />South Jordan, UT 84095 <br />801-619-6500 <br />United States of America <br />Colorado BLM State Office <br />1037 20th Street <br />Denver, Colorado 80202 <br />2.03.4(8) Mine Name: Deserado Mine; MSHA ID# 05-03505 <br />2.03.4(9) Not applicable <br />2.03.5 Compliance Information <br />Neither the applicant nor a subsidiary or affiliate or persons controlled by or under <br />common control with the applicant has (1) had a Federal or State mining permit <br />suspended or revoked in the last five years; or (b) forfeited a mining bond or similar <br />security deposited in lieu of bond. The applicant has received the following notice of <br />violation during the three-year period preceding the third permit renewal application <br />date. <br />NOV CV -2001-10 was issued on May 14, 2001 for "Failure to ensure that noncoal <br />wastes including grease, lubricants, and other flammable liquids are placed and <br />stored in a controlled manner in a designated portion of the permit area." A civil <br />penalty of $250 was assessed by DMG. BME took corrective actions, paid the fine <br />Permit Revision #05 (05/2005) I-7 <br />