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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 />December 8, 2008 r/ <br />REC[i al <br />DEC 1 12008 <br />Division of Reclamation, <br />Mining and Safety <br />6?? <br />COLORADO <br />D I V1 S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Hal T. Richins <br />Ronald W. Cattany <br />Bluerock Energy Corporation Division Director <br />P.O. Box 459 Natural Resource Trustee <br />Nucla, CO 81424 / <br />Re: Notice of Outs nding Issues Regarding signated Mining Operation Determination, <br />J-Birds Mine, Permit No. M-2005-050. <br />Dear Mr. Richins, <br />On June 6, 2008 the Division of Reclamation Mining and Safety (DRMS) sent Bluerock Energy <br />Corporation notification of a change in the law regarding uranium mine classifications. Per House Bill <br />1161 which was signed into law on May 20, 2008 all uranium mines are now defined as Designated <br />Mining Operations (DMO's). As a result of HB 1161, DRMS inspected Bluerock Energy's J-Bird Mine <br />active operational conditions, reviewed file documents, and has determined that the existing permit, File <br />No. M-2005-050 is a Designated Mining Operation. Therefore, Bluerock Energy was notified that it <br />must submit an Environmental Protection Plan (EPP) required under Rule 6.4.20 and Rule 7.1.3 (2) <br />within 180 days of the July 28, 2008 correspondence which is February 2, 2009. It should be also noted <br />that an Emergency Response Plan (ERP) for a DMO is required by Rule 8. <br />It has come to DRMS's attention that in October, 2008 Bluerock ceased operations at the J-Birds and its <br />other Colorado operations for an indefinite period of time. Bluerock affirmed that with correspondence <br />received on December 8, 2008. Although the correspondence notes that the J-Bird went into Temporary <br />Cessation (TC) it did note give a specific date of shutdown. Please provide that date. Please note the <br />notice given by Bluerock does not meet the requirements of 1.13.5. If Bluerock intends to be shut down <br />for 180 days or more then a Technical Revision placing the mine into TC may be in order. Bluerock <br />needs to review its plans and the requirements of Rule 1.13 to see if a Temporary Cessation (TC) of the <br />permit is warranted. If a TC is being proposed it must be submitted as a Technical Revision with the <br />appropriate fee of $1,006.00. Staff will be happy to discuss this option fully with Bluerock. A lack of <br />ruining for more than 180 days, without a TC notice will require DRMS to assess whether reclamation <br />and final closure is required, and whether a noncompliance situation has occurred. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines