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DESERADO MINE <br />BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675 -4300 <br />fax (970)675 -4399 <br />July 25, 2012 <br />Mr. Zach Trujillo <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Minor Revision #154 — Minor changes related to Midterm Review #6. <br />Dear Zach: <br />JUL, 3 U 2012 <br />Division of Reclamation, <br />Mining and Safety <br />Enclosed is minor revision (MR -154) to address minor changes to Permit C- 1981 -018 related to <br />Midterm Review #6. <br />Our responses to the issues the Division identified in the Midterm Review #6 are as follows: <br />Rule 2.03.6 #1: <br />Page I -8 has been revised to include reference to Exhibit I -6. <br />Rule 2.04.11(4) and 2.05.6(2) #1: <br />The list of TE &S species was compared to that currently available from the Colorado <br />Natural Heritage Program (last updated 7/28/2011). Only minor changes were identified in the <br />classification of already identified plant species. The changes do not alter any potential impacts <br />from the Deserado Mine. Page II.F -18A was revised to reflect the current listings. <br />Rule 2.05.3 #1: <br />Page IV -31 was revised as requested to include reference to Maps 25 and 26. <br />Rule 2.05.3 #2: <br />Pages IV -17 and V -14 was revised as requested to remove reference to Map 83. <br />Rule 2.05.4(2)(b) #1 <br />Page V -66 was revised to update the bond calculations and the proposed permit term. <br />Due to minor changes to the reclamation seed mix proposed which may potentially alter the bond <br />calculations Illustration 47 will be revised with the most recent version of the bond calculations <br />once this MR is ready for approval. <br />Other changes requested by BME: <br />Lease boundary adjustment for Federal Coal Leases C- 023703 and COC- 51551: <br />Addendums are necessary to correctly document a boundary adjustment between these <br />two coal leases. The document from 1991 from the US Department of the Interior addressing <br />this adjustment needs to be added to the back of Exhibit 1 -2 and I -2E. <br />