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3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675 -4300 <br />fax (970)675 -4399 <br />DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />August 11, 2011 <br />Mr. Jim Stark <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Professional Certification for the Coal Processing Waste Banks <br />Deserado Mine - Permit No. C 1981 - 018 <br />Dear Jim: <br />RECE IVED <br />AUG i 2 X011 <br />DiVISlort 4 , <br />Mining and Safety <br />During the second quarter of 2011, qualified persons working under my direction and I <br />conducted a series of compliance inspections on the active coal processing waste banks located <br />within the Deserado permit area. These inspections were conducted roughly on a bi- weekly <br />basis. <br />I am a professional engineer registered in the State of Colorado and my experience fulfills the <br />requirements of the Colorado Surface Coal Mining Reclamation Act. <br />The purpose of these inspections and subsequent certification is to ensure proper construction of <br />the refuse piles and to satisfy the requirements of Rule 4.10.2 of the Colorado Mined Land <br />Reclamation Board. <br />INSPECTION OF ACTIVE AREAS 2 -3, 4 and 5A <br />There are no apparent points of seepage, or indications of slope failure on the active piles. The <br />surface drainage facilities were adequately maintained and were working properly to convey <br />surface runoff. Sediment control structures need periodic maintenance and are cleaned out as <br />conditions warrant. <br />The following maintenance work was completed since the last quarterly report: <br />1. Some refuse was stockpiled on the winter storage pile on 5A due to weather <br />conditions adverse to drying and compaction. <br />2. Dressing and preparatory compaction was performed on the refuse piles during the <br />quarter. <br />3. The majority of the winter storage stockpile was spread and compacted. <br />Our permit requires no sub -drain system, as geotechnical investigations for the disposal site <br />revealed no groundwater present. <br />Refuse is spread and compacted in lifts not exceeding 24" in depth. Typically refuse is spread <br />much thinner producing 6" to 8" lifts. <br />