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October 19, 2015 <br />COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Uepartment of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Mr. Shannon Murphy <br />Smuggler Gold Mine, LLC <br />100 West Bennett Ave. — P.O. Box 661 <br />Cripple Creek, CO 80813 <br />RE: MINE OPERATION SMUGGLER GOLD MINE —DRMS FILE NO. P-2012-011 <br />AREASON TO BELIEVE A VIOLATION EXISTS AND NOTICE OF BOARD HEARING <br />Dear Mr. Murphy: <br />C.R.S. 34-32-116(4), Rule 5.6 and your notice of intent require you to submit to the Division of Reclamation, <br />Mining and Safety (Division) $86.00 in annual fees and an annual report on or before October 11 "' of each year. <br />As the date of this letter, the Division has not received your Annual Fee, Report, and Map for year 2014. <br />Therefore, the Division has reason to believe this is a violation of C.R.S. 34-32-116(4) et seq., Rule 5.6, and your <br />notice of intent, and have scheduled this matter to appear before the Mined Land Reclamation Board (Board), <br />pursuant to C.R.S. 34-32-124. <br />A Formal Public Hearing will be held during the November 18-19, 2015 Board Meeting for consideration of these <br />possible violations. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning <br />at 9:00 a.m. on November 18, 2015, or as soon thereafter as the matter can be considered. At that hearing you <br />will have the opportunity to present your defense. <br />This is an important legal proceeding and you must appear in person for this hearing. If you fail to appear <br />an order and money judgment may be entered against you. In addition, failure to appear at the hearing <br />may result in legal consequences including, but not limited to, loss of party status and your ability to seek <br />reconsideration from the Board or seek judicial appeal in district court. <br />If the Board finds a violation at this hearing, it may issue a Cease and Desist Order and/or assess a Civil Penalty <br />in the amount of $100.00 to $1,000.00 for each day of violation pursuant to C.R.S. 34-32-124(7). If you have <br />evidence indicating that the possible violations noted above do not exist or have been corrected, please provide it <br />to the Division as soon as possible or bring it to the hearing. <br />All parties have an opportunity to review and comment on a draft of the Board's order before it becomes final. If <br />you wish to do so, you must provide the Board with a written request to review the draft Order prior to or at the <br />time of your hearing, or you must inform the Board orally during the hearing that you request to review the draft <br />Order. The Board's attorney must receive your comments on the draft order within three calendar days of the date <br />the draft Order is e-mailed, unless that deadline is extended by the Board's attorney. Submit all comments in <br />I c <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http.//mining.state.co.us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />1876 . <br />