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was transferred to Frank H. Ewes. On September 10, 2004, the Section 110 Reclamation <br />Permit was transferred to the Applicant. On November 23, 2004, the Applicant submitted <br />a conversion application to the Division converting the Section 110 Reclamation Permit <br />into a Section 112 Reclamation Permit. The conversion application sought to increase the <br />permitted area from 9.9 acres to 341 acres. The conversion application was approved by <br />the Division on March 15, 2005, and the bond was set at $327,000.00. The Applicant <br />failed to submit a financial warranty within one year, as required by Construction <br />Materials Rule 4.1(2). The Applicant was required to renotice the matter in a newspaper of <br />general circulation. As a result of the second round of notice, the Applicant received <br />objections from numerous interested persons, including the Objectors. <br />The Objectors assert that the Division erred in initially approving the Applicant's permit <br />conversion application it lacked subject matter jurisdiction to do so in March 2005. The <br />Objectors also contend that the Board lacks subject matter jurisdiction over this matter at <br />this time. Specifically, the Objectors assert that Section 34-32.5-110(5)(a) of the Colorado <br />Land Reclamation Act for the Extraction of Construction Materials ("Act") requires that <br />any operator, including a successor operator, must hold a Section 110 Reclamation Permit <br />for two consecutive years before such operator may apply to convert its Section 110 <br />Reclamation Permit into a Section 112 Reclamation Permit. Because the Applicant did not <br />hold its Section 110 Reclamation Permit for two yeazs before it applied for a permit <br />conversion in November 2004, the Objectors argue that the Division lacked subject matter <br />jurisdiction to approve the Applicant's conversion application in March 2005, and that the <br />Board lacks subject matter jurisdiction to do so now. <br />King Mountain Grave], LLC <br />M-1978-314 <br />