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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 />February 22, 2011 <br />Paul Daggett <br />U.S. Bureau of Land Management <br />White River Field Office <br />220 Market St. <br />Meeker, CO 81641-3419 <br />Re: Deserado Mine (Permit No. C-1981-018) <br />Permit Revision Application No. 7 (PR-7) <br />200 Acre Expansion of Mine Permit Area. No Proposed New Disturbance <br />Dear Mr. Daggett: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division of Reclamation, Mining and Safety hereby issues notice, in accordance with Title 34, Article 33, <br />Section 118, Paragraph 3, of the Colorado Revised Statutes, that on February 22, 2011, an application to revise <br />coal mining operations at the Deserado Mine was considered complete for the purposes of filing. All review and <br />comment periods as provided in the Act and the Regulations initiate from this date of filing. <br />Blue Mountain Energy (BME) has submitted Permit Revision 07 (PR-07) for the Deserado Mine to add an <br />additional 200 acres to the permit area. This increase in permit area will allow for the completion of new longwall <br />panels. Deserado currently holds federal coal lease C-8425 for the permit expansion area. This coal lease was <br />incorporated into the permit document with the approval of Minor Revision 143 (approved on 26 March 2010). No <br />New surface disturbance is proposed with this revision. <br />The underground coal mining operation is on land located approximately 7 miles Northeast of Rangely, Colorado. <br />The permit area is further described as follows: <br />Portions of Sections 1, 2, 3, 4, 10, 11, and 12, T2N, R101W, 6th PM, all in Rio Blanco County; Portions of <br />Sections 21, 23, 25, 26, 27, 28, 30, 31, 34, 35, and 36, T3N, R101W, 6th PM; All of Sections 22, 29, 32, and 33, <br />T3N, R101 W, 6th PM, all in Rio Blanco County. <br />The above-mentioned tracts of land are shown on USGS 7.5 minute Quadrangle map of Rangely NE and Cactus <br />Reservoir. <br />The DMG requests written verification regarding Federal mining leases and/or federal surface access <br />approval. Applicant has referenced the Federal mining lease(s) and/or Federal Surface access <br />agreement(s) C-8425 in this application as a document upon which they base their legal right to enter. <br />Please verify that the lease(s) and/or agreement(s) has/have been issued and that final BLM/federal <br />agency lease/agreement approval has been granted. If the lease/agreement application is pending, please <br />notify DMG as to the status of the lease/agreement review and when a decision is anticipated. <br />Verification of Federal leases and/or federal surface access agreements should be sent to me at the address <br />listed above. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines