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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 />March 24, 2010 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />MAR 2 6 2010 <br />Divi WA of R#CWn won, <br />Low" MW s awyr <br />RE: Minor Revision #143 - Modification of DP-1 pond outlet structures, Raw <br />Water Lagoon pumping system, and to Federal Coal Lease C-8425 <br />Dear Jason: <br />Enclosed is a minor revision (MR-143) addressing the above mentioned modifications to <br />Mine Permit No. C-1981-018. <br />The modifications to DP-1 pond outlet structures were undertaken to address issues related <br />to a failed riser pipe in 2008. No increases in bonding are warranted as part of this <br />modification. <br />The pump station at the Raw Water Lagoon will be moved to the north side of the pond. <br />The current pumping layout is along the lagoon's south embankment and is subject to <br />periodic flooding from the White River. The new layout alleviates the concerns with <br />flooding. Another advantage of the new system will be better protection of osprey. <br />Ospreys have taken up summer residence at the pond on the power pole structures. This <br />modification will help alleviate much of the risks of electrocution associated with their <br />seasonal nest building and occupation of the power poles. Additional bond is anticipated <br />for this change as 0.1 acres of additional disturbance immediately adjacent to existing <br />disturbance is anticipated and a concrete pump vault will be installed. As part of these <br />modifications the surface piping from the existing pumps will be removed once the new <br />pumps are in operation (940 feet of 6" pipe). <br />Modifications to Federal Coal Lease C-8425 have been approved by the BLM. Changes to <br />the approved mine plan are included in this minor revision. No changes are currently <br />proposed to the Permit Area Boundary as the portions of the lease modifications presently <br />needed fall within the present boundary. <br />Map 147 was also revised to show drill roads from old drill site construction in the D-seam <br />area. This change is to better document the full extent of the approved disturbances at the <br />Deserado Mine.