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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 />July 31, 2009 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Road #65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit C-81-018 <br />Second Quarter 2009 Sediment Pond Inspection Reports <br />Dear Mr. Wanstedt, <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) have found the above <br />referenced report to be in compliance with the following CDRMS regulation: <br />4.05.9(17) - Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) - A copy of the report shall be submitted to the Division on a quarterly basis. <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The second quarter sediment pond inspection reports were received by the Division via email on 30 <br />July 2009. Sediment pond inspections were conducted by BME on 30 June 2009. <br />The only discharge that occurred during the quarter was from the Raw Water Lagoon. The Riser pipe <br />at DP-1 is completed with only minor, non-critical details (walkway) yet to be addressed as well as <br />enhancement to reflect the design. <br />If you have any questions feel free to contact me. (303) 866-3567 ext 8134 <br />Sincerely, <br />Jason Mu 'ck <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines