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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 />November 1, 2010 <br />Mr. Scott Wanstedt <br />Environmental Engineer <br />Blue Mountain Energy, Inc. <br />3607 CR 65 <br />Rangely, CO 81648 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />RE: Deserado Mine, C1981-018, Second Quarter 2010 Coal Processing Waste Bank Inspection Report <br />Dear Mr. Wanstedt: <br />The Division received Blue Mountain Energy's (BME) Second Quarter 2010 Coal Processing Waste Bank <br />Inspection Report on July 29, 2010. <br />Coal Processing Waste Banks at the Deserado Mine consist of "sub-areas" 1, combined 2/3/4, and 5A. The <br />Coal Processing Waste Bank Inspection Report documents waste bank construction that occurred during the <br />Second quarter 2010, and was conducted under the direction of Colorado Registered Engineer, Mr. Jason L. <br />Tuttle. The Report documents that inspections were conducted bi-weekly during the quarter. <br />BME conducted ten compaction tests during Second quarter 2010. BME reports that all tests exceeded the <br />90% Proctor compaction requirement. , Refuse pile no. 1 has been inactive for years, has been graded to final <br />contours, topsoiled, and vegetation established and no longer required quarterly compaction test. Therefore, <br />compaction testing was conducted on sub-areas 2/3, 4 and 5. No signs of instability of the waste banks were <br />identified in the Second quarter report. <br />BME's Second quarter 2010 report documents that the top-soil and subsoil stockpiles for sub-areas 1, 2/3/4, <br />and 5A have been seeded, vegetation established on these piles and the vegetative growth appears adequate to <br />control erosion. Excess subsoil material from subsoil pile 5A was utilized for haul road berm work. This area <br />will be seeded in the fall. <br />The Coal Processing Waste Banks appear to be constructed in accordance with Permit Section III.B.3 and <br />Maps 77A and 150. This report complies with Rules 4.10.2 and 4.09.1(11)(a), and Rule 4.09.1(11)(b). <br />Sincerely, <br />anet <br />?tal Protection Specialist II <br />567 ext. 8107 <br />C:\jhb\C81018\reports\Coa1 Processing Waste Banks\2?d Q 2010.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines