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Purpose and Scope of this Document <br />Introduction <br />This document is the Permit Revision No. 7 (PR -07) proposed decision package prepared by the <br />Colorado Division of Reclamation, Mining and Safety (Division) for the Deserado Mine. <br />Through Permit Revision No. 7, Blue Mountain Energy, Inc (BME) is adding 200 acres to the <br />permit area and proposing a revised mine plan for the B -seam. This document includes: 1) the <br />proposed decision to Approve the permit revision application; 2) a summary which includes a <br />history of the review of the permit revision application, a description of the environment affected <br />by the operation and a description of the mining and reclamation plan; and 3) the written findings <br />of compliance the Division has made as required by the Colorado Surface Coal Mining <br />Reclamation Act. Detailed information concerning the findings of compliance can be found in <br />the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. <br />The Division has received an application for a permit revision to revise surface coal mining <br />operations at the Deserado Mine. The application was submitted by BME. The mine is operated <br />by BME. <br />The Deserado Mine permit area is located on Federal and Private lands within Rio Blanco <br />County, Colorado. The coal to be mined is federally owned and the surface lands to be disturbed <br />by mining are privately and federally owned. In PR -07, BME is proposing to add 200 acres to <br />the permit boundary and update the B -Seam mine plan. BME is adding portions of previously <br />unleased coal to several proposed longwall panels in the B -Seam. A modification to Coal Lease <br />C -8425 was obtained to accommodate the revised mine plan. <br />The Deserado Mine is located approximately nine (9) miles northeast of Rangely, Colorado, <br />north of Colorado Highway 64. The present permit area includes 11,788.71 surface acres, of <br />which 11,468.71 surface acres are federally owned and 320 surface acres are privately owned. <br />With the approval of Permit Revision No. 7, the permit area will increase to 11,988.71 acres, <br />11,668.71 acres of federal surface and 320 acres of private surface. The affected area will <br />increase 497.77 acres, from 6,083.46 acres to 6,581.23 acres. The legal description of the lands <br />included within the present permit area is described below: <br />Township 2 North, Range 101 West of the 6 Principal Meridian <br />Portions of Sections 1, 2, 3, 4, 10, 11, and 12 <br />Township 3 North, Range 101 West of the 6 Principal Meridian <br />Portions of Sections 1, 4, and 5 <br />All of Sections 2 and 3 <br />Township 6 North, Range 90 West <br />Portions of Sections 21, 23, 25, 26, 27, 28, 30, 31, 34, 35, and 36 <br />All of Sections 22, 29, 32, and 33 <br />Proposed Decision <br />Deserado Mine Permit Revision 07 <br />C- 1981 -018 3 29 June 2011 <br />