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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 />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />June 7, 2013 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc <br />3607 County Road 65 <br />Rangely, CO 81648 <br />Re: Deserado Mine (Permit No. C- 1981 -018) <br />Permit Revision No. 8 (PR -8) <br />Permit Area Exnansion <br />Dear Mr. Wanstedt: <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining and Safety (Division) has received the Blue <br />Mountain Energy, Inc. (BME) submittal of Permit Revision 8 for the Deserado Mine. The <br />revision was received on February 27, 2013 and deemed completed on March 8, 2013. PR -8 <br />proposes to add an additional 1656.3 acres to the Deserado Mine's permit boundary and update <br />the mine's B -Seam mine plan. The Division has reviewed the submittal and has the following <br />questions and comments. <br />Rule 2.03.4 — Identification of Interests <br />1) DRMS: It is the Division's understanding that at this current time, BME is still within the <br />process of obtaining the federal coal lease number COC- 74813. Once obtained, please update <br />the proposed Exhibit 1 -217 to include all necessary information for compliance. <br />BME: As noted, BME will forward you a copy of the Federal Coal Lease COG 74813 once <br />awarded. Our bid was accepted as the high bid. We expect to have a finalized lease by mid June. <br />DRMS: Response is sufficient. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />