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_ STATE OF- COLOM- Do <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 C O L O R A D O <br />Phone: (303) 866-3567 D t v I s t o N OF <br />FAX: (303) 832-8106 RECLAMATION <br /> MINING <br /> <br /> SAFETY <br />November 3, 2009 <br /> Bill Ritter, Jr. <br /> <br />Scott Wanstedt Governor <br /> <br />Blue Mountain Energy, Inc. Harris D. Sherman <br />Executive Director <br />3607 County Road #65 Ronald W. Cattany <br />Rangely, CO 81648 Division Director <br /> Natural Resource Trustee <br />RE: Deserado Mine, Permit C-81-018 <br />Third 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 />The third quarter sediment pond inspection reports were received by the Division on 02 November <br />2009. Sediment pond inspections were conducted by BME on 30 September 2009. <br />The only discharge that occurred during the quarter was from the Raw Water Lagoon. All repairs and <br />upgrades to DP-1 have been completed <br />If you have any questions feel free to contact me. (303) 866-3567 ext 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of <br />Mined Land Reclamation Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines