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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 />C O L O RA D O <br />P I V I S l o N o f <br />Denver, Colorado 80203 <br />RECLAMATION <br />Phone: (303) 866 -3567 <br />N <br />I NIN G <br />MINING <br />FAX: (303) 832 -8106 <br />SAFETY <br />May 9, 2013 <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 />County Road 65 Subsidence Monitoring Report <br />Sediment Pond Inspection Report for First Quarter 2013 <br />Mr. Wanstedt, <br />The Division finds Deserado Mine's, C- 1981 -018, Subsidence Monitoring Report for County Road 65 in compliance with <br />the following rules: <br />• 2.05.6(6) —Subsidence Monitoring report was received on April 26, 2013. Longwall mining did not occur during <br />this quarter. No damage to the raod surface was noted. <br />The Division finds Deserado Mine's, C- 1981 -018, Sedeiment Pond Inspection Report for first quarter 2013 in compliance <br />with the following rules: <br />• 4.05.9(14) — All impoundments were inspected by a qualified registered professional engineer and other qualified <br />professional specialists. <br />• 4.05.9(15)(a) — No appearance of erosion, instability, structural weakness or other hazardous conditions were <br />observed. <br />• 4.05.9(15)(b) — Existing and required monitoring procedures were met. <br />• 4.05.9(15)(c) — The depth of impounded water at the time of inspection were documented. <br />• 4.05.9(15)(d) — Existing storage capacity of impoundments were documented. <br />• 4.05.9(15)(e) — Other aspects of the structure affecting stability or requiring maintenance was documented. <br />Cracks were observed on the newly constructed Ponds BD -1 and 2 but are not of structural concern. It was noted <br />that BD -3 needed repair work on the embankment. An April inspection showed that the embankment was <br />repaired. Pond DP -1 had a vertical hole in it's embankment and as been repaired as noted in the April inspection <br />report. <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 />