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R'FSTERN <br />ASSOCIATION <br />ING <br />T6eNah~na[ <br />Peer SuPPrY <br />Caoperatite <br />October 15, 1998 <br />Mr. Dan Mathews <br />Division of Minerals & Geology <br />2148 Broadway, f/C5 <br />Grand Junction, CO 81503 <br />T'l J <br />/_" III IIIIIIIII 1'11111 <br />/d~i~9~ sss <br />arrrr, - ~.T <br />RE: MINOR REVISION NO. 113 REQUEST FOR DRILLING UP TO SEVEN (7) COAL <br />DEVELOPMENT HOLES AT BLUE MOUNTAIN ENERGY'S DESERADO MINE. <br />PERMIT NO C-81-018. <br />Dear Mr. Mathews: <br />Blue Mountain Energy is continuing to develop the new B Seam workings at the Deserado Mine and <br />is requesting a minor revision of the Deserado Mine Permit in order to drill up to seven (7) new coal <br />development holes. The data from these seven (7) new holes is required for the detailed engineering <br />and mine planning necessary for maximum economic recovery of the coal resource. Blue Mountain <br />Energy is interested in completing this work before the end of 1998. <br />Each of the potential seven (7) new holes would be drilled with air mist to total depth below the B <br />Seam with a 5-1/8 inch bit. The holes will be logged with geophysical tools immediately and then be <br />plugged, marked and reclaimed as specified in the permit. The holes will be plugged before the drilling <br />rig leaves the drilling location. It is anticipated that up to three of the potential seven holes will be <br />twinned and core drilled through the B Seam coal interval. Each of the twin coreholes will also be <br />plugged immediately upon completion. Table 1 attached to this minor revision request is a list of the <br />new holes, the locations, surface elevations and projected total depths. <br />Access to the proposed locations will be by overland travel utilizing existing access roads, trails and <br />two tracks. New access (overland travel) will be required over a total distance of 2430 feet. The <br />shallow depth of these new holes will require only minimal dozer work at each site. At each location, <br />the vegetation and topsoil will be removed from the area to be occupied by the drill rig (50' x 10' each) <br />and the mud pit. Vegetation will be dozed into a pile at one end of the site and the topsoil dozed into <br />a pile at the other end of the site to facilitate reclamation. The mud pits will be small dozer cut pits <br />PO Box 33434 <br />Denver, CO 80233-3424 <br />Telephone303/450-9976 <br />Fax 303/450-1042 <br />E-mail wfalakewood®pcisys.net <br />