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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 COLORADO <br />Phone: (303) 866-3567 D I v IS S t o N o <br />F <br /> <br /> <br />FAX: (303) 832-8106 <br />RECLAMATIO <br />N <br />MINING <br /> <br /> SAFETY <br />February 2, 2010 <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 <br />CO 81648 Division Director <br />, Natural Resource Trustee <br />RE: Deserado Mine, Permit C-81-018 <br />Fourth Quarter 2009 Coal Processing Waste Banks Report <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 CDRMS Regulations: 4.09.1(11) and 4.10.2(2). <br />Please note that a minimum of quarterly inspection is required and for Deserado, more frequent <br />inspection is required during critical construction periods associated with 1) removal of topsoil, 2) <br />installation of surface drainage systems, 3) placement and compaction of materials, and 4) <br />revegetation. Please ensure that these specific activities are inspected and documented by date in the <br />report if they should occur during the quarter. <br />It is noted that refuse was spread and compacted during the fourth quarter and a winter stockpile area <br />was compacted and stockpiling began. Eight compaction tests were conducted and all areas tested <br />exceeded the required proctor level of 90%. <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 Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines