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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 />August 21, 2012 <br />Mr. Foster Kirby <br />OSMRE — Western Service Center <br />1999 Broadway, Suite 3320 <br />Denver, Colorado 80202 -3050 <br />RE: Deserado Mine — Permit No. C- 1981 -018. <br />Minor Revision #151 — Rock Dust Hole #4 & Associated Facilities. <br />Minor Revision #152 — B -Seam Dewatering System As- Built. <br />Minor Revision #153 — B -Seam Dewatering System Expansion. <br />Minor Revision #154 — Mid -Term Review #6. <br />Dear Foster: <br />DRMS has approved the permit actions referenced above. A copy of the approved <br />revisions to the application for Blue Mountain Energy, Inc. (BME) are enclosed. <br />Approval of MR -154 resulted in a net reduction in the bonding requirements. Thus, no <br />increase in bond is required at this time. <br />No work has begun on any of the approved actions except for MR -153 which documents <br />the work completed pursuant to TR -68. <br />If you have any questions, please call me at 970 - 675 -4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc: <br />cc: Zach Trujillo - DRMS <br />Jeff Dubbert <br />