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Colorado Department of Public Health and Environment <br />7 Air Pollution Control Division <br />Blue Mountain Energy, Inc. <br />Permit No. 12RB802 -2 <br />Initial Approval <br />GENERAL TERMS AND CONDITIONS: (IMPORTANT! READ ITEMS 5,6,7 AND 8) <br />This permit is issued in reliance upon the accuracy and completeness of information supplied by the <br />applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the <br />source, in accordance with this information and with representations made by the applicant or applicant's <br />agents. It is valid only for the equipment and operations or activity specifically identified on the permit. <br />Unless specifically stated otherwise, the general and specific conditions contained in this permit have been <br />determined by the APCD to be necessary to assure compliance with the provisions of Section 25- 7- 114.5(7)(a), <br />C.R.S <br />Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or <br />appeal of, a condition hereof shall constitute a rejection of the entire permit and upon such occurrence, this <br />permit shall be deemed denied ab initio. This permit may be revoked at any time prior to final approval by the <br />Air Pollution Control Division (APCD) on grounds set forth in the Colorado Air Quality Control Act and <br />regulations of the Air Quality Control Commission (AQCC), including failure to meet any express term or <br />condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the <br />applicant, or the Division revokes a permit, the applicant or owner or operator of a source may request a <br />hearing before the AQCC for review of the Division's action. <br />4. This permit and any required attachments must be retained and made available for inspection upon request <br />at the location set forth herein. With respect to a portable source that is moved to a new location, a copy of the <br />Relocation Notice (required by law to be submitted to the APCD whenever a portable source is relocated) <br />should be attached to this permit. The permit may be reissued to a new owner by the APCD as provided in <br />AQCC Regulation No. 3, Part B, Section II.B. upon a request for transfer of ownership and the submittal of a <br />revised APEN and the required fee. <br />5. Issuance (initial approval) of an emission permit does not provide "final" authority for this activity or <br />operation of this source. Final approval of the permit must be secured from the APCD in writing in accordance <br />with the provisions of 25 -7 -114 5(12)(a) C.R S. and AQCC Regulation No. 3, Part B, Section III G. Final <br />approval cannot be granted until the operation or activity commences and has been verified by the APCD as <br />conforming in all respects with the conditions of the permit. If the APCD so determines, it will provide written <br />documentation of such final approval, which does constitute "final" authority to operate. Compliance with the <br />permit conditions must be demonstrated within 180 days after commencement of operation. <br />6. THIS PERMIT AUTOMATICALLY EXPIRES IF you (1) do not commence construction or operation within <br />18 months after either the date of issuance of this permit or the date on which such construction or activity was <br />scheduled to commence as set forth in the permit, whichever is later; (2) discontinue construction for a period of <br />18 months or more; or (3) do not complete construction within a reasonable time of the estimated completion <br />date. Extensions of the expiration date may be granted by the APCD upon a showing of good cause by the <br />permittee prior to the expiration date. <br />7. YOU MUST notify the APCD no later than thirty days after commencement of the permitted operation <br />or activity by submitting a Notice of Startup (NOS) form to the APCD. The Notice of Startup <br />(NOS) form may be downloaded online atwww.cdphe. state .co.us /ap /downloadforms.html. Failureto <br />do so is a violation of AQCC Regulation No 3, Part B, Section III.G.1., and can result in the revocation of the <br />permit You must demonstrate compliance with the permit conditions within 180 days after commencement of <br />operation as stated in condition 5. <br />8. Section 25- 7- 114.7(2)(a), C.R.S requires that all sources required to file an Air Pollution Emission Notice <br />(APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to <br />be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit Upon <br />notification, annual fee billing will terminate <br />9. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and control <br />Act or the regulations of the AQCC may result in administrative, civil or criminal enforcement actions under <br />Sections 25 -7 -115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C R.S <br />103/0014/003 ver. 2/00 <br />