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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />D O L D RA D O <br />D I v I S I O N o <br />Denver, Colorado 80203 <br />RECLAMATION <br />Phone: (303) 866 -3567 <br />MINING <br />FAX: (303) 832 -8106 <br />—&— <br />SAFETY <br />March 27, 2012 <br />John W. Hickenlooper <br />Governor <br />Scott Wanstedt <br />Blue Mountain Energy <br />3607 County Rd. 65 <br />Mike King <br />Executive Director <br />Rangely, CO 81648 <br />Loretta E. Pineda <br />Director <br />RE: Deserado Mine, Permit C- 1981 -018 <br />Well Abandonment Report <br />Hole Numbers SC -HG17 and LSB10 -4 <br />Mr. Wanstedt, <br />The Division find Deserado Mine's, C- 1981 -018, Well Abandonment Report for drill holes SC -HG17 and LSB10 -4 in <br />compliance with the following rules: <br />• 4.07.3(3) — The Division received a report detailing the information about the abandonment of drill holes within <br />60 days. <br />• 4.07.3(3)(a) — Location of the drill hole as spotted accurately on a topographic map. <br />• 4.07.3(3)(b) — Depth of the drill holes was given. <br />• 4.07.3(3)(c) — Surface elevation of the drill holes were given. <br />• 4.07.3(3)(d) — Intervals where water was encountered during drilling activities. <br />• 4.07.3(3)(e) — Diameter of the drill holes was given. <br />• 4.07.3(3)(f) — Type of cement was given. <br />• 4.07.3(3)(g) — Amount of cement and volume of slurry mixture used in plugging the drill holes was given. <br />• 4.07.3(3)(h) — Name of drilling contractors and license numbers of drills and rigs was given. <br />• 4.07.3(3)(i) — The method of how the holes were worked was given. <br />If you have any questions, feel free to contact me. <br />Sincerely, <br />Zach Trujillo <br />Environmental Protection Intern <br />(303) 866 -3567 ext. 8164 <br />Zach.Trujillo@state.co.us <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />