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STATE OF <br />DIVISION Of RECLAMATION, MINING AND SAFETY <br />Depanment of Natural Resources <br />7313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 86fr3567 <br />FAX: (303) 832-8106 <br />January 2, 2007 <br />Ms. Jerald Seifert <br />Seifert Construction <br />P.O. Box 305 <br />198 Range View Loop <br />Westcliffe, CO 81252 <br />Re: Ula Pit, Permit No. M-1991-083, Annual Fee and Report, <br />Notice of Violation No. MV-2006-071, Civil Penalties, and Cease and Desist Order <br />Deaz Ms. Seifert: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />-&- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Canany <br />Division Director <br />Natural Resource Trustee <br />C.R.S. 34-32.5-116(3)(a) and (b), 1989 Supp. And Permit No. M-1991-083 require you to submit to the Division of <br />Reclamation, Mining and Safety (the "Division") $688.00 in annual fees and annual report on or before October 29 <br />of each year. As of the date of this letter the Division has not received your annual fees and report for October 29, <br />2006. Therefore, you are in violation of the above cited statute and the provisions of Permit No. M-1991-083. <br />Pursuant to C.R.S. 34-32.5-124 the Mined Land Reclamation Boazd hereby assesses Notice of Violation No. MV- <br />2006-071, Civil Penalties in the amount of $688.00, and Notice and Order to Cease and Desist from ALL mining <br />related activities associated with Permit No. M-1991-083. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.RS. 3432.5-120) UNTIL THE <br />VIOLATION IS ABATED. The Annual Report and Fee requirement is not met until we have received the <br />following components: fee. report, and associated map. If no new disturbances or reclamation have occurred during <br />the previous veaz and no new changes to the previous year's map are necessary, then no new map is required, provided <br />that the Operator shall state this in the Annual Report. <br />If you fail to submit your annual fee, annual report, and the Civil Penalties assessed by February 2, 2007, this matter <br />will be heazd at a Formal Public Hearing before the Mined Land Reclamation Boazd for consideration of permit <br />revocation and forfeiture of the following warranty at the January 10, 2007 (or the following day) Boazd Meeting: <br />Bond Tvae(sl <br />Letter of Credit <br />Bond Number(s) <br /> <br />Boud Amount(s) <br />$23,000.00 <br />If you submit all past due annual fees, reports, and the Civil Penalties by February 2, 2007, this matter will be <br />withdrawn from further Board consideration. <br /> <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />