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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 />21 April 2011 <br />Mr. Scott Wanstedt <br />Blue Mountain Energy, Inc <br />3607 County Road 65 <br />Rangely, CO 81648 <br />Re: Deserado Mine C-1981-018 <br />Permit Revision 7 (PR-07) <br />Dear Mr. Wanstedt: <br />COLORADO <br />D IV IS 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 Colorado Division of Reclamation, Mining and Safety (Division) has received the <br />Blue Mountain Energy, Inc (BME) submittal of Permit Revision 7 for the Deserado <br />Mine. The revision was received on 14 February 2011 and deemed complete on 22 <br />February 2011. PR-07 proposes to add an additional 200 acres to the Deserado Mine's <br />permit boundary and update the mines B-Seam mine plan. The Division has reviewed <br />the submittal and has the following questions and comments. <br />Rule 2.05.3(2)(b) - Operation Description <br />1. BME has provided a copy of revised Map 120 - B-Mine Plan. This mine plan <br />map shows the completion of longwall panel 12 and portions of panels 13, 14 and <br />15. In the map legend, BME shows portions of panels 13, 14 and 15 in blue, <br />which indicates that these areas are "possible mining development". These areas <br />of possible mining development are currently outside of the Deserado Mine <br />permit area and federal coal leases. Please describe how BME will ensure that <br />these areas outside of the current Deserado Mine permit area and federal <br />coal leases are not mined. Please provide the Division with a timetable for <br />either obtaining new (or modified) federal coal leases and including these <br />areas in the permit boundary or changing the current mine plan to remove <br />these areas from consideration for mining. <br />2. Rule 2.05.3(2)(b) states that each "...map shall include a detailed timetable <br />sufficient to describe the various mining phases proposed..." While BME has <br />provided a detailed mine plan map (Map 120), there are no proposed dates for the <br />B-Seam mining operations. Based on the Division's last inspection (April 2011), <br />currently Deserado is approximately half way through the completion of mining <br />Office of <br />Mined Land Reclamation Office of <br />Denver Grand Junction Durango Active and Inactive Mines