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March 15, 2016 <br />COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Departmar;t of Na* ,,ar Res,-,urcc> <br />1313 Sherman Street, Room 215 <br />Denier, CO 80203 <br />Broken Arrow Investments LLC <br />Doug Derr <br />801 8th St., Ste. 130 <br />Greeley, CO 80631-3903 <br />/25/2016 <br />Forwarding retumed mail <br />to updated address <br />RE: (/Notice of Violation No. MV -2016-022, Civil Penalties, and Cease and Desist Order <br />Derr Pit (Permit No. M-2008-017) <br />Dear Mr. Derr: <br />Pursuant to C.R.S.34-32.5-116(3)(a)(b) and Permit No. M -2008-0I 7, you are required to submit to the <br />Division of Reclamation, Mining and Safety (Division) an annual report, map and an annual fee, due on <br />or before December 16`x' of each year. The annual fee required for your permit is $791.00. As of the date <br />of this letter, the Division has not received the required annual fee, report or map for 2015. <br />Therefore, you are in violation of the above cited statute and the provisions of your Permit No. M -200S- <br />017. Pursuant to C.R.S. 34-32.5-124, the Mined Land Reclamation Board hereby assesses a Notice of <br />Violation MV -2016-023, Civil Penalties in the amount of $791.00 and an Order to Cease and Desist from <br />all mining related activities associated with Permit No. M-2008-017. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY <br />OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. <br />34-32.5-120) UNTIL TILE VIOLATION IS ABATED. <br />The annual report and fee requirement will be considered submitted when the Division has received the <br />required items currently due. In order to avoid permit revocation, please submit the following: <br />• $791.00 required for annual fee for 2015 <br />• $791.00 civil penalties assessed <br />(total of $1,582.00) <br />• required annual report for 2015 <br />• required annual map for 2015 <br />If you fail to submit the above items to the Division by April 25, 2016, this matter will be heard at a <br />formal public hearing before the Mined Land Reclamation Board at the April 27-28, 2016 Board meeting <br />being held at 1313 Sherman Street, Room 318, Denver, Colorado, <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />1 <br />