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NOTICE OF PROPOSED DECISION <br />The Colorado Division of Reclamation, Mining and Safety proposes to Approve with conditions Permit <br />Revision Application No. 7, submitted by Blue Mountain Energy, Inc for a coal mining permit at the <br />Deserado Mine (Permit No. C- 1981 -018). Blue Mountain Energy (BME) has submitted Permit Revision <br />07 (PR -07) for the Deserado Mine to add an additional 200 acres to the permit area. This increase in <br />permit area will allow for the completion of new longwall panels. Deserado currently holds federal coal <br />lease C -8425 for the permit expansion area. This coal lease was incorporated into the permit document <br />with the approval of Minor Revision 143 (approved on 26 March 2010). No New surface disturbance is <br />proposed with this revision. <br />The Deserado Mine is located in Rio Blanco County, approximately 7 miles Northeast of Rangely, <br />Colorado. The underground operation has an anticipated maximum production capacity of 3.2 Million <br />tons per year. Coal interest is Federal, and the surface to be affected is Federal and private land. The <br />permit area encompasses approximately 11,988.71 acres. <br />This proposed decision is based on a finding that the proposed operation will comply with all <br />requirements of the Colorado Surface Coal Mining Reclamation Act, Section 34 -33 -101, et seq., C.R.S., <br />and the regulations promulgated thereunder. <br />Copies of the proposed decision, including any stipulations, are on file for public inspection at the <br />Colorado Division of Reclamation, Mining and Safety, Room 215, Centennial Building, 1313 Sherman <br />Street, Denver, Colorado 80203 and at the Rio Blanco County Clerk and Recorder, 500 Main Street, <br />Meeker, CO 81641. Persons with an interest that may be adversely affected by the proposed decision <br />may request a formal hearing before the Mined Land Reclamation Board on the proposed decision. Such <br />request must be made within thirty (30) days of the initial publication of this notice, must be in writing, <br />and must state with reasonable specificity the reasons for the request and the objections to the proposed <br />decision. <br />