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Land Reclamation Board for Coal Mining_ : <br />2.08.3, 2.06.2(10), 2.06.3(4)(a), 2.06.5(3)(c), 2.06.7(5) and 3.02.2(4) <br />Mid -Term Review <br />Deserado Mine - Permit No. C -81 -018 <br />This document presents the results of the Midterm Permit Review of the Deserado Mine <br />operated by Blue Mountain Energy, Inc. The Colorado Division of Reclamation Mining, <br />and Safety (Division) conducted this review for the purposes of fulfilling the <br />requirements of the Colorado Surface Coal Mining Reclamation Act and the Regulations <br />of the Colorado mined Land Reclamation Board for Coal Mining. <br />This Midterm Review was conducted to fulfill the requirements of Sections 2.08.3, <br />2.06.2, 2.06.3, 2.06.5, 2.06.7, and 3.02.2(4). <br />Section 2.08.3 of the Regulations requires that the Division conduct a review of each <br />permit issued, prior to its midterm. Based on this review, for good cause shown, the <br />Division may require reasonable revisions or modifications of the permit provisions to <br />ensure compliance with the Act and Regulations. <br />Sections 2.06.2, 2.06.3, 2.06.5, and 2.06.7 require that experimental practices, <br />mountain top removal variances, variances from approximate original contour (AOC), <br />and variances from contemporaneous reclamation, respectively, be reviewed by the <br />Division where applicable during the Midterm Review. <br />Section 3.02.2(4) requires that the Division review the amount of the bond and the <br />terms of acceptance of the bond every 2-1/2 years. <br />The Midterm Review of the Deserado Mine consisted of a review of the findings <br />document, the permit application and subsequent revisions, stipulations, enforcement <br />actions, cost estimate and other assorted permit files and information. <br />The document has six sections. Section I contains a brief history of the mine. Section II <br />contains a summary of permit actions. Section III is a review of the stipulations <br />attached to the permit. Section IV is a review of the enforcement actions issued since <br />Permit Renewal No. 5 (RN -05). Section V is a summary of the review and a discussion <br />of any problems identified as a result of this review that are required to be resolved. <br />Section VI is a review of the Bond(s) and the reclamation cost estimate. <br />Section I - Mine History and the Environment <br />The Deserado Mine is an active underground coal mining operation located in Rio <br />Blanco County, approximately nine miles northeast of Rangely, along County Road 65, <br />near Kenney Reservoir. The initial Division permit for the operation was issued to <br />2 <br />