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BLUE <br />MOUNTAIN <br />ENERGY, INC. <br />August 5, 2004 <br />RECEIVED <br />REA~y~I~'3Q004 <br />Mr. Jim Stark <br />A Subsidiary of <br />Deseret Generalion& D1VtSlOn Of MlneralS and GeOlOgy <br />Trantmission Coaperafive 1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Dear Jim: <br />' eology <br />Division of Minerals 8 Geology <br />RE: Sediment Pond Inspection Report for 2nd Quarter 2004. <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Enclosed is the Sediment Pond Inspection Report for the 2nd quarter 2004 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from DP-1 <br />other than the Raw Water Lagoon. All discharges remained in compliance. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />G~/ <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: <br />3607 County RD #65 <br />Rangely, CO 81648 <br />970-6753300 <br />Fax 970-675-4399 <br />