PERMFILE65479

• Permit No: M1983141
• IBM Index Class Name: Permit File
• Doc Date: 11/2/1994
• Doc Name: PUBLIC HEARING
• Media Type: D
• Archive: No

Contained in Mr. Steen's "Application for an Amendment to a Mining and Reclamation Permit" is an
affidavit listing all mining claims under control of his company. The affidavit was signed July 29, 1985.
In July of 1985, Gold Hill Ventures Limited Partners, represented by Mr. Steen, applied for a building
permit to construct an 8400 square foot storage building. The permit (BP 85-768) was issued August I,
1985.
On August 26, 1985, Gold Hill Ventures was issued a use permit (BP 85-804) for mining and milling.
The permit stipulated that the existing north access onto Sunshine Canyon was to be used, and conditioned
the permit on issuance of a limited impact permit by the Colorado Mined Land Reclamation Board.
In October of 1985, Gold Hill Ventures applied for a remodeling permit (BP 85-1213) to convert the
8400 square foot storage building into a mill. Stipulations were placed on the permit, which included
"To Process minerals extracted from the property only", and "Milling Accessory to underground mining
on the same property only -- no custom milling using imported ore". The permit was issued on
November 12, 1985.
For some time, Mr. Steen, through business entities, had been involved with Richazd Fraser and Gwen
Fraser, who had formed Colina Oro Molina (COM) Incorporated. After consideration regazding business
interests, it was agreed that the mill and land associated with it (portions of the Oscaz Lode and Good
Enough Lode) would be transferred to the Frasers. They took recorded title on February 5, 1987.
In January of 1992, the Land Use Department con[acted Gwen Fraser of COM, Inc., and Mark Steen
of Gold Hill Ventures, in response to several complaints regarding the importation of ore to the Gold Hill
Mill. The letter stated that importing ore would not be allowed, and that the mill, now on a sepaza[ely
owned pazcel, may be in violation because milling is an accessory use to the principal use of mining.
The letter also requested further information regazding these issues.
James Munn, attorney for COM Inc., responded in a letter dated Mazch 23, 1992. It contained a history
of the relationship between COM Inc. and Gold Hill Ventures, and requested that the mill be allowed to
import ore.
On April 28, 1992 the Land Use Department sent a letter to Swede Johnson, who was believed to be an
attorney representing COM Inc. The letter stated the Zoning Administrator's determination that ore could
only be imported from land that was in the immediate vicinity and a part of the mining operation. It also
stated that they had 30 days to appeal that determination to the Boazd of Adjustment. No appeal was
filed.
Rodney Knutson, attorney for Mazk Steen, sent a letter to Gwen Fraser of COM Inc. on August 30,
1943, warning her of the problems that could azise from importing ore without appropriate approvals.
On July 5, 1994, the Land Use Department sent a letter to COM Inc., requiring that they discontinue the
importation of ore to the mill.
On July 27, 1994, COM Inc. sent a letter to the Land Use Department stating that they were not in
violation according to the state's definition of custom milling. It also stated that Building Permit 85-1213
was issued for an out building, and therefore the conditions on the permit did not apply to the mill.
On August 4, 1994, the Land Use Department sent a letter distinguishing between the department's
determination of an industrial use as it applies to milling, and the state's definition of custom milling.
In addition, the letter required records of milling activity as verification of compliance, and established
deadlines for submittal.