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History of Permit C-81-018 <br />Origin of C-81-018 <br />Western Fuels-Utah, Inc. submitted an application for a new permit on March 12, 1980. The <br />Division (then called the Mined Land Reclamation Division) issued permit C-81-018 on July 27, <br />1981. <br />Transfer of Ownership to Blue Mountain Energy Inc. <br />On May 28, 1997 the Division approved a transfer of ownership of the Deserado Mine from <br />Western Fuels-Utah, Inc. to Blue Mountain Energy, Inc. <br />Histo <br />The Deserado Mine is an active underground mine operation located in Rio Blanco County, <br />approximately nine miles northeast of Rangely, Colorado along County Road 65 near Kenney <br />Reservoir. <br />Mining operations during previous permit terms have utilized longwall extraction and room and <br />pillar techniques to extract coal from the "D" Seam. "D" Seam mining within the permit area <br />was completed in 1999, with operations shifting to the underlying "B" Seam, beginning with <br />development mining in 1998 and 1999, and initiation of longwall extraction in early 2000. <br />Operational status was most recently reviewed and summarized by the Division in Permit <br />Revision 05, dated 02 February 2009. Status and summary of all stipulations made by the <br />Division are summarized below. <br />Status of Previous Stipulations <br />Stipulation No. 1: IA PRIOR TO ISSUANCE OF A PERMIT TO CONDUCT MINING <br />OPERATIONS, THE APPLICANT MUST: SUBMIT A PERFORMANCE BOND PAYABLE <br />TO THE STATE AND THE US GOVERNMENT IN AN AMOUNT CONSISTENT WITH <br />THE REQUIREMENTS OF (B) BELOW AND THE RECLAMATION COST ESTIMATES <br />CONTAINED IN THE APPLICATION. <br />Status: This stipulation was satisfied and terminated on 27 July 1981. <br />Stipulation No. 2: UPON COMPLETION OF PRODUCTION MINING WITHIN THE <br />EASTERN MOST PORTION OF ROOM AND PILLAR PANEL R.P.I-D AND THE <br />EASTERN HALF OF LONGWALL PANEL L.W.D-l, THE APPLICANT SHALL PREPARE <br />AN ANALYSIS OF THE SUBSIDENCE MONITORING DATA COLLECTED TO THAT <br />DATE. NO PRODUCTION MINING SHALL BE COMMENCED WITHIN ANY <br />REGULATORY AUTHORITY. <br />Status: This stipulation was satisfied and terminated on 9 May 1986. <br />Deserado Mine 5 June 18, 2009