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May 15, 2001 Colorado Division of Minerals and Geology Attention: Carl Mount 1313 Sherman Street Room 215 Denver, CO 80203 CONNELL~SOURCES, INC. STEAMBOAT DNISION P.O. Box 882590 23690 US Hwy 40 Steamboat Springs, CO 80488 ^'^~ n~o-0200 FAX (970) 870-0290 111 llllllllllllllll RECEIVED MAY 16 2001 Division of Minerals and Geology Re: Tellier Pit MLRD # 98-058 Sett Report of Disturbance Violation Out Of Permit Area Via Fax and Fed-Ex Dear Mr. Mount: This is my follow-up letter to yesterday's vice mail regarding our companies out of permit boundary disturbance and mining in the Northwest quadrant of the pit. Following is a review of my notes, actions, measurements, and related calculations regarding this volation. Approxanately two weeks ago, Routt County Planner John Eastman called me and said he had been contacted by Frank Camilletti regarding whether Connell Resources' mining plan allowed for a steep dewatering trench along the fenceline and concern for the integrity of the existing fence. It is my understand'mg that Mr. Camilletti is a trust administrator for the trust, which has the grazing, and gravel rghts to the property owned by the Colorado State Land Board. John reviewed the file and said we proposed this type of mining operatbn when we received permd approval. John and I discussed, and John said he would recommend to Mr. Camilletti, that 'rF he had any problems or contains with our operation that we would encourage him to call me. On Friday moming May 11, 2001 Luke Tellier, the pd landowner and our lessor called me and said he had discussed our operation with Frank Camilletti, Edna Tellier, and Kent Cmfls (who did the original pennil work) and alerted me that Connell Resouroes might have encroached outside of the mining boundaries. I mmediatery grabbed my site map and our GPS system and went to the site. I quickly discovered my error. Connell Resources began mining this pit in 1999; since all approvals were not received until too late in the year in 1998 to begin pit development work in 1998.Over the fvsl winter between approval and pit development, we lost two property line lathes, which were slightly inside of the e>asting western boundary fenceline, which has divided the properties for decades. It was my error and violation to not reset the line since the mining plan shows the property line to be 0' to 30' from the existing fence depending on the location. On Saturday May 12 Connell Resources took the adjacent stockpile of gravel and filled back in the gravel bench of mined material, which is approrimately 2980 square feet of surface area from 10' to 20' deep. The loaders wheel rolled the gravel backfill in the bench to establ'sh compaction and slope competency. We are now very close to be able to backfill the bench and creole our internal pd 3 bD 1 topsoil slope, butwould like your direction or inspection prior to this operation. On Monday moming 1 reported the violation to you on your vice mail. The landowner Luke Tellier had arranged for an inspection and meeting for me wi0r Beverly Rave from the State Land Board. Beverly was disappointed that I had balled the gravel bench but gave me direction to contact Edna Tellier to determine what damages the State Land's lessee wanted for the encroachment. Ms. Rave said the Land Board did not want any compensation for the encroachment but the lessee would probably want some damages. I will report the results of this contact with Mrs. Tellier as soon as I am able to talk with her.