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dr 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 27, 2010 <br />Ms. Janet Binns <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />MAP <br />RE: Sediment Pond Inspection Report for 2°d Quarter 2010. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Janet: <br />Enclosed is the Sediment Pond Inspection Report for the 1St quarter 2010 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from the Raw <br />Water Lagoon. - <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining did not occur under County Road 65 during the quarter. No recent <br />impacts from subsidence were observed. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br /> <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: