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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 1, 2008 <br />Scott Wanstedt <br />Blue Mountain Energy, Inc. <br />3607 County Road #65 <br />Rangely, CO 81648 <br />RE: Deserado Mine, Permit C-81-018 <br />Second Quarter 2008 Sediment Pond Inspection Reports <br />Dear Mr. Wanstedt, <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) have found the above <br />referenced report to be in compliance with the following CDRMS regulation: <br />4.05.9(17) - Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) - A copy of the report shall be submitted to the Division on a quarterly basis. <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The first quarter sediment pond inspection reports were received by the Division on 25 July 2008. <br />Sediment pond inspections were conducted by BME on 27 June 2008. <br />No ponds reported discharge at the time of the inspection. Maintenance comments reported that cracks <br />filled in during last quarter have not reappeared at RP-4 and burrows were filled in at RP-2/3 and RP- <br />4. The Riser pipe at DP-1 was damaged during the first quarter and was temporally repaired. <br />If you have any questions feel free to contact me. (303) 866-6424 <br />Sincerely, <br />Jason Mus <br />Environmental Protection Specialist <br />Cc: Dan Hernandez, CDRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines