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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 />October 27, 2010 <br />Ms. Janet Binns <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Sediment Pond Inspection Report for 3rd Quarter 2010. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Janet: <br />cEWED <br />P?V0i2010 <br />Division of Reciainatfon, <br />&ig x-Fd Sy <br />Enclosed is the Sediment Pond Inspection Report for the 3rd quarter 2010 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from DP-1 and <br />the Raw Water Lagoon. All ponds performed as designed. <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 occurred at the very end of the quarter. Only <br />very superficial cracking was observed with no corrective actions warranted. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />C- <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: