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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 />AUG 1? Z 011 <br />pivision a' a nd Safeaj n, <br />RE: Sediment Pond Inspection Report for 2 Quarter 2011. Mining <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C- 1981 -018). <br />Dear Jim: <br />Enclosed is the Sediment Pond Inspection Report for the 2 quarter 2011 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from DP -1 <br />pond and the Raw Water Lagoon. All ponds performed as designed. <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 occurred at the very end of the 3rd quarter 2010. <br />Only very superficial cracking was observed with no corrective actions warranted. No <br />additional subsidence effects were observed during the quarter. Longwall mining did not <br />occur under County Road 65 during this quarter. <br />If you have any questions, please call me at (970)675 -4322. <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: <br />