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information received from the Office of Surface Mining Applicant Violator System, <br />operations owned or controlled by Blue Mountain Energy Inc. do not own or control any <br />operations which are currently in violation of any law, rule, or regulation of the United <br />States, or any State law, rule, or regulation, or any provision of the Surface Mining Control <br />and Reclamation Act or the Colorado Surface Coal Mining Reclamation Act. <br />(2.07.6(2)(g)(i))• <br />8. Blue Mountain Energy Inc. does not control and has not controlled mining operations with a <br />demonstrated pattern of willful violations of the Act of such nature, duration, and with such <br />resulting irreparable damage to the environment as to indicate intent not to comply with the <br />provisions of the Act. (2.07.6(2)(h)). <br />9. The Division finds that surface coal mining and reclamation operations to be performed <br />under this permit will not be inconsistent with other such operations anticipated to be <br />performed in areas adjacent to the permit area. (2.07.6(2)(i)). <br />10. At the time of issuance of this proposed decision for RN-05, the Division holds a <br />reclamation performance bond for the Deserado Mine in the amount of $5,630,311.00, in the <br />form of Corporate Surety Bond issued by Travelers Casualty and Surety <br />Company. During the RN-05 review, the Division examined the bond document and <br />updated the estimated cost of reclamation for the worst-case disturbance that will occur <br />during the 2009-2014 permit term. The amended reclamation cost estimated by the Division <br />is $5,627,751.00. This amount represents the Division's estimate of the cost of reclamation. <br />It does not reflect any bond release for reclamation work completed by the operator <br />(2.07.6(2)(k)). The cost estimate with supporting documentation is set forth in the <br />Division's "Permit Renewal 05 Cost Update" for the Deserado Mine, dated February, 6 <br />2009. <br />11. The Division has made a negative determination for the presence of prime farmland within <br />the permit area. The decision was based on a pre-application investigation of the soils found <br />within the proposed permit area. Pursuant to 2.04.12(2) criteria, the applicant has provided <br />information which demonstrates that lands within the permit area, which could be used as <br />cropland, are not irrigated or naturally sub-irrigated, have no dependable water supply of <br />adequate quality, and receive less than 14 inches of annual precipitation. Therefore, the <br />Division hereby renders a negative determination for the presence of prime farmland within <br />the permit area. (2.07.6(2)(k)). <br />12. Based on information provided in the application, the Division has determined that an <br />alluvial valley floor (AVF) exists within the permit or adjacent area. The alluvial valley <br />floor is adjacent to the White River. A surface water lagoon and associated access roads and <br />water line facilities have been constructed on an undeveloped portion of the alluvial valley <br />floor that is not significant to farming, near the confluence of Scullion Gulch and the White <br />River. Alluvial water level and quality is monitored in this vicinity. Kenney Reservoir, <br />which is to the southwest of the mine site and beyond the permit area, has inundated a <br />significant portion of the AVF within the permit area. The Division finds that the proposed <br />surface coal mining operation will not affect the AVF. <br />Deserado Mine 27 June 18, 2009