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• <br /> 5. On December 21, 2004, the Division conducted an inspection of the site <br /> and found that the historic prospect pits had not been reclaimed and that tailings <br /> continued to be blown from the pond. The tailings constitute acid-forming or toxic- <br /> producing material. <br /> 6. On September 12, 2011, the Division sent the Operator a Reason to <br /> Believe a Violation Exists letter which provided notice regarding the alleged <br /> violations and the October 2011 hearing. <br /> 7. On September 16, 2011, the Division sent the Operator the August 24, <br /> 2011 inspection report. <br /> 8. On September 23, 2011, the Division received notice that the primary <br /> contact for the Operator was no longer affiliated with AGC Resources, LLC. <br /> 9. On October 12, 2011, the Board held a hearing to consider an alleged <br /> violation by the Operator for failing to handle acid-forming or toxic-producing <br /> material in a manner that will protect the drainage system from pollution. The <br /> Board issued an order effective December 8, 2011 ("December 2011 Order"), finding <br /> the Operator in violation of section 34-32-116(7)(c), C.R.S. The Board ordered the <br /> Respondent to: <br /> a. within 30 days of the effective date of the December 2011 Order, <br /> submit and obtain approval of a technical revision to permit number M-1994- <br /> 117 addressing reclamation of the historic prospect pits and the transport of <br /> tailings from the pond; and <br /> b. pay a civil penalty of$9,800 within 30 days of the effective date <br /> of the December 2011 Order. <br /> 10. On or about December 22, 2011, the United States Department of the <br /> Interior issued a letter to the Operator stating, among other things, that "[d]ue to <br /> the recent inactivity, discharge of local consultants and lack of maintenance at the <br /> Cash and Who Do Mines ... and Gold Hill Mill ..., the [Bureau of Land Management <br /> ("BLM")] has determined in accordance with 43 C.F.R. 3809.336(a) that the <br /> Operator has abandoned these operations" and ordered the Operator to contact the <br /> BLM or the BLM will initiate the financial guarantee forfeiture process. <br /> 11. The Operator failed to submit and obtain approval of a technical <br /> revision to permit number M-1994-117 addressing reclamation of the historic <br /> prospect pits and the transport of tailings from the pond as ordered in the December <br /> 2011 Order. <br /> AGC Resources, LLC <br /> Gold Hill Mill, M-1994-117 <br /> MV-2012-005 2 <br />