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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 />September 4, 2013 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc <br />3607 CR 65 <br />Rangely, CO 81648 <br />Re: Blue Mountain Energy <br />Notice of Intent to Explore (NOI) <br />File No. X- 2013 - 230 -04 <br />Decision <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 Division reviewed the above - referenced NOI in accordance with the applicable provisions of <br />the Colorado Surface Coal Mining Act ( "Act ") and the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining ( "Reg <br />ulations), and commented in a letter dated August 20, 2013. Please see the Division's comments <br />identified below: <br />Notification of Completeness [Rule 2.02.21 <br />Notice of Intent No. X- 2013 - 230 -04 is Complete <br />Determination of Proposed Activities as Coal Exploration [Regulations 2.02.2(3) and <br />1.04(22)] <br />The activities described in the Notice of Intent qualify as "coal exploration" as defined at <br />Regulation 1.04(22). The coal exploration activities described will involve removal of 250 tons <br />or less of coal. <br />Determination of Substantial Natural Land Surface Disturbance [Regulations 2.02.2(3) and <br />1.04(127)] <br />The coal exploration activities described will substantially disturb the natural land surface, as <br />defined at Regulation 1.04(27). <br />Determination of Amount of Performance Bond [Rule 3.05.2(1)] <br />The Division has prepared a preliminary estimate of the amount of performance bond sufficient <br />to assure the satisfactory reclamation of the proposed coal exploration disturbance if, in the event <br />of bond forfeiture, the work had to be performed by the Division through independent <br />contractors. The amount of performance bond calculated was $35,773.63. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />