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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 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />October 12, 2010 <br />Mr. Scott Wanstedt <br />Environmental Engineer <br />Blue Mountain Energy, Inc. <br />3607 CR 65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, C1981-018, Second Quarter 2010 Pond Inspection Reports <br />Dear Mr. Wanstedt: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />The Division has reviewed Blue Mountain Energy's (BME) Sediment Pond Report for Second Quarter 2010 <br />for the Deserado Mine. The report was received on July 29, 2010. The Deserado Mine has 21 permitted <br />ponds. The second quarter sediment pond inspection report states that the ponds were inspected by BME <br />personnel on March 29, 2010. This date is the same date recorded for sediment pond inspection for first <br />quarter 2010. <br />Please provide the Division with a second quarter sediment pond inspection report which reflects the <br />condition of the ponds inspected between April 1, 2010 and June 30, 2010. <br />Sincerely, <br />Protection Specialist II <br />C:/jhb/C81018/Reports/pond inspections/2ndQ 2010.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines