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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 />Inter - office Memorandum <br />To: Edna Mine file (Permit C- 1981 -018) <br />From: Rob Zuber <br />Subject: PR -07 and need for CHIA update <br />Date: July 7, 2011 <br />STATE OF COLORADO <br />Blue Mountain Energy Inc. submitted an application for PR -07, and this was received by the Division on <br />February 14, 2011. This revision proposes to add 200 acres to the permit area (essentially an area of in- <br />holding within the permit area) and proposes a revised mine plan for the B -seam. <br />The Division has determined that there will be no additional hydrologic impacts to the White River or <br />other receiving waters due to implementation of PR -07 at Deserado Mine. This is documented in the <br />Hydrologic Balance section of the "Proposed Decision and Findings of Compliance for the Deserado <br />Mine, Permit No. C -81 -018, Permit Revision PR -07" (June 29, 2011). The following language is found <br />on page 35 of this document: <br />No significant cumulative hydrologic impacts are expected as a result of the mining activities at Deserado <br />Mine. The Division finds, in accordance with C.R.S 34- 33- 114(2)(c) and Rule 2.07.6(2)(c), that the <br />operation has been designed to prevent material damage outside the permit area. <br />Therefore, the CHIA for Deserado Mine and the White River has not been updated. <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAF ETY <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />Mined Land Reclamation <br />