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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 />August 20, 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, Degas Boreholes and Exploration Boreholes <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) revised submittal of Minor Revision 156 for the Deserado Mine. <br />The updated revision was received on August 19, 2013. MR -156 proposes to add an additional <br />five degas boreholes, five nitrogen injection/monitoring holes, four exploration boreholes and <br />associated roads and nitrogen pipelines. The Division has the following comment: <br />Rule 3.02.2 — Determination of Bond Amount <br />1. The Division has performed a cost estimate for the addition of five degas boreholes, five <br />nitrogen injection/monitoring holes, four exploration holes and associated roads and <br />nitrogen pipelines. The total value of this estimate is $34,592.33 (see attached cost <br />estimate). The Division's cost estimate is consistent with previous cost estimates for <br />both the permit and exploration files approved by both the Division and BME. The <br />Division respectfully requests a response from BME with any questions regarding the <br />cost estimate or an acceptance of the Division's estimate. If BME wishes to use the <br />Division's cost estimate for MR -156, please submit a copy of the estimate to the <br />Division from BME. <br />If you have any questions, please contact me. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />