2009-03-16_REVISION - C1981018

• Permit No: C1981018
• IBM Index Class Name: REVISION
• Doc Date: 3/16/2009
• Doc Name: Adequacy Review
• From: DRMS
• To: Blue Mountain Energy
• Type & Sequence: RN5
• Email Name: JDM
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
March 16, 2009
Scott Wanstedt
Blue Mountain Energy
3607 County Road 65
Rangely, CO 81648
RE: Deserado Mine (Permit C-1981-018)
Permit Renewal No. 5 (RN-5) Adequacy Review
Dear Mr. Wanstedt,
COLORADO
DIVISION OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Ir.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Colorado Division of Reclamation, Mining, and Safety (Division) has reviewed Blue Mountain
Energy's Permit Renewal, RN-5. Please respond to the following adequacy comments as necessary:
1. Per Rule 2.05.4(2)(e)(i), please provide an update to Table V-7 on page V-33 to reflect
schedule of revegetation dates consistent with the new permit term proposed in RN-5.
2. Attached is the reclamation cost estimate for the 2009 Deserado Mine Permit Renewal, RN-5.
The Division updated the reclamation cost estimate with 2007 costs. This updated estimate
total is $5,627,751.00. This estimate includes reclamation tasks identified in the permit and
includes costs for Minor Revisions 132 through 139 and Technical Revisions 64 and 66, the
only revisions that have included an increase in liability since the estimate was last updated
with the 2007 Midterm Review (09 March 2007). This RN-5 revised cost estimate is $4,167.00
more than the current liability of $5,623,584.00. The revised liability in the RN-5 estimate is
$2,560.00 less than the current bond held of $5,630,311.00.
There were no changes to the volumes, haul distances, etc. contained in the 2007 Midterm
Review Estimate. All of the cost increases are from increased equipment and materials costs.
Based on the RN-05 estimate, the liability of the Deserado Mine has increased approximately
.07%. Attached is the RN-5 cost estimate and spreadsheet with the associated cost differences
between the 2007 Midterm Review and the 2009 Permit Renewal.
Please provide an update to page V-66 to reflect the new proposed permit term and the new
bond calculation.
3. Section IV.D.3 discusses disposal site sub-area site plans. Page IV-17 states that "the sub-areas
that will be used until 2006 are shown in greater detail on Map77, Map77A and Map 150".
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines