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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 />August 9, 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 />Minor Revision 156 (MR -156) <br />N2 Monitoring and Degas Boreholes <br />Dear Mr. Wanstedt <br />STATE OF COLORADO <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 Mountain Energy, Inc. <br />(BME) submittal of Minor Revision 156 for the Deserado Mine. The revision was received on July 23, 2013 and <br />deemed completed on August 2, 2013. MR -156 proposes to add an additional five degas boreholes, five nitrogen <br />injection/monitoring holes, one return shaft and associated roads and nitrogen pipelines. The Division has the <br />following comment: <br />Rule 3.02.2 — Determination of Bond Amount <br />The Division has performed a cost estimate for the addition of five degas boreholes, five nitrogen <br />injection/monitoring holes, one return shaft and associated roads and nitrogen pipelines. The total value of <br />this estimate is $27,000.88 (see attached cost estimate). The Dh4sion's cost estimate is consistent with <br />previous cost estimates approved by both the Division and BME. The Division respectfully requests a <br />response from BME with any questions regarding the cost estimate or an acceptance of the Dh4sion's <br />estimate. <br />If you have any questions, please contact me. <br />Sincerely, <br />Zach T. Trujillo <br />Environmental Protection Specialist <br />Zach.TnujiIIor_a)statc.co.us <br />(303)866 - 3567x.8164 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />