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COLORADO <br /> s Division of Reclamation, <br /> Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver, CO 80203 <br /> August 24, 2016 <br /> Jim Dilley <br /> Dilley's Sand and Gravel <br /> 1914 Edmunds St <br /> Brush CO 80723 <br /> Re: Reason to Believe a Violation Exists and Notice of Board Hearing; Ayers Pit; <br /> Permit M1981-004 <br /> Mr. Dilley, <br /> On April 14, 2016, the Division of Reclamation Mining and Safety(DRMS) conducted an inspection of <br /> Ayers Pit(Permit M1981-004). During this inspection it was noted that: the financial warranty was <br /> insufficient,the permit boundary markers were missing, and activity at the site had deviated significantly <br /> from the approved mining plan. <br /> In accordance with 34-32.5-117(4)(b)(I)(b)which states "...a financial warranty shall be sufficient to <br /> assure the completion of reclamation of the affected lands..."a surety increase revision was initiated by <br /> DRMS on June 16, 2016. The bond adjustment is required by 34-32.5-117(4)(c)(II)to be submitted to <br /> DRMS within 60 days, in this case no later than August 15,2016. To date, no additional bond has been <br /> submitted for the site, and no reclamation has taken place to reduce the bonding liability. <br /> A surveyed map of the permit boundary, submitted to DRMS on August 15 by the operator, confirmed <br /> that mining activity has impacted area outside of the permit boundary. <br /> At this time DRMS believes that the permittee is in violation of the Act pursuant to: <br /> • C.R.S. 34-32.5-117(6)(a) for failure to maintain a financial warranty in good standing for the <br /> entire life of a permit issued. <br /> • C.R.S. 34-32.5-116(4)(i) for failure to protect areas outside of the affected land from slides or <br /> damages occurring during the mining operation and reclamation. <br /> • C.R.S. 34-32.5-124(1) for failure to comply with the conditions of a permit. Specifically, the <br /> Operator failed to follow the approved mining plan, in violation of provisions of the permit. <br /> Therefore, the Division has reason to believe that a violation exists to the Mined Land Reclamation Act, <br /> C.R.S. § 34-32.5-101 et ss ., and have scheduled this matter to appear before the Mined Land <br /> Reclamation Board. <br /> "by- 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 Robert Randall, Interim-Executive Director I Virginia Brannon, Director *"_t`876 <br />