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DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675-4300 <br />fax (970)675-4399 <br />July 30, 2009 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RECEIVED <br />AUG U ?, Z009 <br />Division ui Auuiamation, <br />Mining and Safety <br />RE: Sediment Pond Inspection Report for 2nd Quarter 2009. <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jason: <br />Enclosed is the Sediment Pond Inspection Report for the 2nd quarter 2009 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from the Raw <br />Water Lagoon. <br />Several minor issues remain to be addressed concerning the discharge structure <br />associated with DP-1. The permanent riser is now in place with only minor details <br />needing to be addressed. The emergency spillway is being enhanced to better serve the <br />intent of the design. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: