2009-12-18_GENERAL DOCUMENTS - C1981018

• Permit No: C1981018
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 12/18/2009
• Doc Name: Letter Regarding Perimeter Markers
• From: DRMS
• To: Boue Mountain Energy, Inc
• Permit Index Doc Type: General Correspondence
• Email Name: DIH
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
December 18, 2009
Mr. Scott Wanstedt
Blue Mountain Energy, Inc
3607 County Road 65
Rangely, CO 81648
RE: Perimeter Markers
Dear Mr. Wanstedt:
COLORADO
D I V I S I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
Representatives from our Division and the US Office of Surface Mining conducted a joint inspection of Blue
Mountain Energy Inc's Deserado Mine on September 16, 2009. During this inspection, it appeared that Blue
Mountain Energy Inc may have been out of compliance with Sections 4.02.3 and 4.02.4 of the Regulations of
the Colorado Mined Land Reclamation Board for Coal Mining. These regulations pertain to the use and
maintenance of on-the-ground perimeter markers.
The Division has historically interpreted Section 4.02.3 of the Regulations to mean that surface areas
approved by the Division to be disturbed by surface operations or facilities associated with underground coal
mines must have their perimeters clearly marked prior to the approved activities being initiated. The
Division has interpreted Section 4.02.4 of the Regulations to mean that these perimeter markers must
remain in place until such time as the Division terminates its jurisdiction over those surface areas.
Blue Mountain Energy Inc suggested verbally during the September 16, 2009 inspection that Section 4.02.4 of
the Regulations could be interpreted to mean that the perimeter markers required by Section 4.02.3 could be
removed once the activities were no longer being conducted, rather than having to remain in place until the
areas associated with the approved activities were released from DRMS jurisdiction. The Division verbally
agreed that it would consider Blue Mountain Energy Inc's interpretation of Section 4.02.4 of the Regulations
before deciding whether to consider any potential Division enforcement action.
Following the September 16, 2009 inspection, the Division considered Blue Mountain Energy Inc's
interpretation, and concluded that the Division's historic interpretation is the more appropriate of the two.
The Division conveyed this conclusion in an e-mail message to Blue Mountain Energy Inc dated October 13,
2009. During a Division inspection of the Deserado Mine conducted on November 12, 2009, Blue Mountain
Energy Inc verbally requested the opportunity to provide its interpretation to the Division in writing so as to
allow the Division an opportunity to reconsider its conclusion. The Division verbally agreed. The Division,
however, has to date not received Blue Mountain Energy Inc's written interpretation. Given that three
months have now passed since the September 16, 2009 inspection, the Division believes we must proceed in
accordance with our historic interpretations of Sections 4.02.3 and 4.02.4 of the Board's Regulations.
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Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines