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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 />~~ <br />~'~~+~® <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAF ETY <br />MAR 0 2 2009 Bill Ritter, Jr. <br />February 26, 2009 Governor <br />• Division or Reclamation, Harris D. Sherman <br />Mr. Michael Collins / Mining and Safety Executive Director <br />Bluerock Resources, Ltd. Ronald w. cattany <br />350-580 Hornby Street Division Director <br />Natural Resource Trustee <br />Vancouver, British Columbia V6C 3B6 <br />Re• Status of Bluerock Ener~v Coruoration Permits and Notices of Intent in the' <br />State of Colorado. <br />M-1977-500, Peggy Mine, 1 l Od mine permit, M-2005-050, J-Bird Mine, 110d mine <br />permit, P-2007-068, Sunbeam Project, Notice of Intent, P-2008-002, Tramp Mine <br />Exploration, Notice of Intent, P-2008-014, U.S. Grant, Notice of Intent <br />P-2008-017, Donna K, Notice of Intent and P-2008-023, J-Bird Exploration Notice of <br />Intent. <br />Dear Mr. Collins, <br />The Colorado Division of Reclamation Mining and Safety (DRMS) has recently become <br />aware of the unfortunate closure and sale of the Bluerock Energy Corporation. Please be <br />aware that DRMS has received no correspondence in regard to any shut downs, layoffs, <br />sales or transfers from Bluerock Energy or Bluerock Resources. This letter is to inform <br />Bluerock that per Rule 1.16 an operator has 30 days to notify the Office of any significant <br />changes in regard to contact information, sales or bankruptcy. Per DRMS review of <br />Bluerock's website and e-mails, which are unacceptable forms of communication, DRMS <br />believes Bluerock has failed to comply with Rule 1.16. Please accept this letter as a <br />formal request for written verification of Bluerock Energy's status and intentions in <br />regard to the state issued reclamation permits and notices of intent for prospecting noted <br />above. <br />As a reminder Bluerock Energy is responsible for maintaining compliance on its <br />permitted sites until a transfer of the state issued permit (if any) is completed. Enclosed <br />please find an inspection report for the Peggy (Tramp) Mine. Issues that were previously <br />noted in March of 2008 as concerns have now been upgraded to problems with corrective <br />date actions that must be met. This action is being taken due to a lack of proper response <br />by Bluerock to correct the issues. If Bluerock fails to comply in correcting the problems <br />they will be upgraded to possible violations and scheduled for a Mined Land Reclamation <br />Board hearing for enforcement. At the hearing DRMS may ask for civil penalties of <br />Office of <br />Office of Active and Inactive Mines <br />Mined Land Reclamation Denver Grand Junction Durango <br />