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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 />April 22, 2013 <br />Mr. Zach Trujillo RECEIVED <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 6 n" Denver, CO 80203 <br />`or ° eclamation, <br />�s <br />& s <br />RE: Sediment Pond Inspection Report for 1st Quarter 2013. <br />01 � <br />County Road 65 Subsidence Monitoring Report <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C- 1981 -018). <br />Dear Zach: <br />Enclosed is the Sediment Pond Inspection Report for the 1st quarter 2013 for the Deserado Mine. The <br />only discharge that occurred during the quarter was from the Raw Water Lagoon. Outflows within the <br />dewatering pond system did not result in a discharge out the regulated outfall from the Last Chance <br />Pond (BLC). <br />Two issues regarding the ponds arose during the quarter. First, the embankment breached between <br />BD -3 and BD -4. Due to the minimal difference in elevations of these two ponds this breach did not <br />pose any substantial problems. The remaining ponds within the system were more than adequate to <br />contain and treat any reduction in storage volume. This embankment was repaired in April. <br />Second, on DP -1, a small vertical hole about eight to ten inches square formed at the top of the <br />embankment. We speculate that it was caused by a small rodent followed by water collecting then <br />infiltrating through this hole. This hole was towards the downstream side of the embankment. To <br />repair this hole it was dug out with a backhoe and the material was replaced and compacted to grade. <br />COUNTY ROAD 65 SUBSIDENCE REPORT <br />Longwall mining under County Road 65 did not occur this quarter. No damage to the road surface was <br />observed. <br />If you have any questions, please call me at (970)675 -4322. <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: <br />