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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 C O L O RA D O <br />Phone: (303) 866-3567 D IVIS I ON OF <br />RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />February 2, 2009 <br /> Bill Ritter, Jr. <br />SCottWanstedt Governor <br />Blue Mountain Energy, Inc. Harris D. Sherman <br /> <br />3607 County Road #65 Executive Director <br /> <br />Rangely, CO 81648 Ronald W. Cattany <br />Division Director <br /> Natural Resource Trustee <br />RE: Deserado Mine, Permit C-81-018 <br />Forth 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 />The forth quarter sediment pond inspection reports were received by the Division on 29 January 2009. <br />Sediment pond inspections were conducted by BME on 01 December 2008. <br />The only discharge that occurred during the quarter was from the Raw Water Lagoon. Maintenance <br />comments reported that burrows were filled in at RP-2/3. The Riser pipe at DP-1 was damaged during <br />the first quarter is currently under construction with only minor details (trash rack and walkway) yet to <br />be addressed. <br />If you have any questions feel free to contact me. (303) 866-3567 ext 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines