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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 2, 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 and Third 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 />Blue Mountain Energy's (BME) resubmitted a Sediment Pond Report for Second Quarter 2010 for the <br />Deserado Mine on November 1, 2010. The original report was received on July 29, 2010. The revised second <br />quarter sediment pond inspection report states that the ponds were inspected by BME personnel on June 30, <br />2010. This inspection date is acceptable and meets the requirement for inspection during second quarter <br />2010. The Deserado Mine has 21 permitted ponds. Of these 21 ponds, only RP-2/3, PR-4, and RP-5 were <br />identified as needing maintenance. Animal burrows on these three ponds were reported to have been filled in. <br />No other problems or maintenance concerns were noted in the second quarter report. <br />Third quarter 2010 Sediment Pond Report was submitted on November 1, 2010, as well. Only DP-1 was <br />reported to have discharged during third quarter 2010. This agrees with the Division's inspection conducted <br />during the third quarter as well. BME inspected the sediment ponds on September 30, 2010. No new <br />concerns or maintenance items were identified during third quarter 2010. <br />These reports fulfill the requirements for Rule 4.05.6(13). Thank you for your prompt submittal of these <br />reports <br />Sincerely, <br />Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines