REP17687

• Permit No: C1981018
• IBM Index Class Name: Report
• Doc Date: 8/3/2006
• Doc Name: 2005 AHR Review Letter
• From: DMG
• To: Blue Mountain Energy, Inc.
• Annual Report Year: 2005
• Permit Index Doc Type: Hydrology Report
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1373 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
3 August 2006
Scott Wanstedt
Deserado Mine
3607 County Road 65
Rangely CO 81648
SUBJ: Deserado (C-1981-018) 2005WY AHR Review
Dear Mr. Wanstedt:
COLORADO
DIVISION O E
MINERALS
GEOLOGY
0.ECLA NATION•NINING
SAEETY•SUENCE
Bill Owens
Governor
Russell George
Executive Director
Ronald W. Cottony
Division Director
Natural Resource Trustee
The review of the Deserado 2005 AHR has been completed. The report is satisfactory
and meets the operator's obligations.
Following is a review as per the predictions made in the PHC.
(1) PHC: Very little water will be pumped to the surface from the underground
mine.
This prediction is accurate. No water was pumped from the mine in the 2005 WY.
(2) PHC: Groundwater inflow into the mine will be very low.
The prediction is accurate. The AHR reports small (6-8 gpm), localized, short-duration
inflows. The mine is very dry with outcrop up-gradient of the mine contributing to limit
the potential for recharge to the mine area. Additionally, the coal seams themselves have
bean demonstrated to not transmit significant water.
(3) PHC: Mine inflows are predicted to not exceed 5 to 10 gpm.
The prediction appears to be accurate. The statement is made in the AHR that average
inflows have been 6-8 gpm.
(4)PHC: The local groundwater table may be lowered as mining proceeds.
The prediction is accurate. As occurred in the eastern mining district, local water levels
in the western district have dropped as mining approached and dewatered. Wells up-dip
from the mining have dropped also.
Offirn of Office of Colorado
Mined Land Rxlamation ARive and Inactive Mines Geological Survey