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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 />April 5, 2011 <br />Mr. Jim Stark <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />1? <br />? <br />?. d a <br />01" ?R <br />? <br />RE: Sediment Pond Inspection Report for 1St Quarter 2011. <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jim: <br />Enclosed is the Sediment Pond Inspection Report for the 1St quarter 2011 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from DP-1 <br />pond and 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 3rd quarter. <br />Only very superficial cracking was observed with no corrective actions warranted. No <br />additional subsidence effects were observed during the quarter <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: