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L L DESERADO MINE <br />]BLUE MOUNTAIN ENERGY <br />3607 County Rd. 65 <br />Rangely, CO 81648 <br />(970)675-4300 <br />fax(970)675-4399 <br />October 23, 2008 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RECEIVED <br />OCT 2..4 2008 <br />Division ofa d Saf?Y <br />Mining <br />RE: Sediment Pond Inspection Report for 3rd Quarter 2008. <br />Blue Mountain Energy, Inc., Deserado Mine (Permit C-1981-018). <br />Dear Jason: <br />Enclosed is the Sediment Pond Inspection Report for the 3rd quarter 2008 for the <br />Deserado Mine. The only discharge that occurred during the quarter was from the Raw <br />Water Lagoon. <br />Problems continue to be addressed concerning the discharge structure associated with <br />DP-l. The temporary riser remains installed with preparations underway to install a <br />permanent structure yet this fall. <br />If you have any questions, please call me at (970)675-4322. <br />Sincerely, <br />Scott Wanstedt <br />Environmental Engineer <br />enc.: