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~ >M ~ <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman SC, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303)832.8106 <br />January 12, 2006 <br />Mr. Bill R. Addison / <br />Colorado Mazble, L.L.C. <br />229Industrial Pazk Rd. <br />Cartersville, GA 30121 <br />~' ~ ~' STATE OF COLORADO <br />RE: Lily Mines; Permit No. M-1987-028 <br />Notice of Possible Violation of a Board Order; Mining Outside of Permit Area <br />Dear Mr. Addison: <br />COLORADO <br />DIVISION O F <br />MINF~R~ALS <br />GEOLOGY <br />0.ECLANATION•MINING <br />SAFETY•SCIFNCE <br />gin owenE <br />Go~.errrlor <br />Russell fxorge <br />Executive Director <br />Ronald W. Gttany <br />Division Director <br />Naturel Resource Tnntee <br />On October 4, 2005 the Division of Minerals and Geology conducted a routine inspection of the Lily <br />Mines, Permit No. M-1987-028 and found the following: <br />Measurements on site indicated that approximately .75 acres has been disturbed above and to the west of <br />the, largest and lowest pit area by tree clearing, access road building and blasting activities. Ill addition, <br />the waste dump has been extended to the south and trees have been cleared below the access road and to <br />the west of the waste dump in apparent prepazation for extending the dump to the west. <br />Based on the data collected, the Division believes the operator is in possible violation of the Mined Land <br />Reclamation Boazd Order of January 21, 2005 that placed a Cease and Desist Order on any further mine <br />related disturbance outside the present permit boundary: <br />The Division will schedule this matter before the Mined Land Reclamation Boazd. <br />A Formal Public Hearing will be held during the Febnlaly 15-16, 2006 Board meeting for consideration <br />of the possible violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, <br />Colorado, beginning at 10:00 a.m, on Febmary 15n' or beginning at 9;00 a.m. on February 16n', or as soon <br />thereafter on each of those days as the matter can be considered. At that hearing you will have the <br />opportunity to be represented and heazd. It will be reiterated that there is reason to believe that you are in <br />violation of the Boazd Order noted above. <br />Ifthe Board finds a violation at this hearing, it may issue a Cease and Desist Order, assess a Civil Penalty <br />in the amount of $100 to $1000 for each day of violation, suspend or revoke the permit, and forfeit the <br />$282,000.00 Letter of Credit Bond Number 371 drawn on the Jasper Banking Company. If you have <br />evidence indicating that the possible violations noted above do not exist or have been corrected, please <br />provide it to us as soon as possible or bring it to the hearing. <br />Following the hearing, all parties have an opportunity to review and comment on a draft of the <br />Boazd's order before it becomes final. If you wish to do so, you must provide the Boazd with a <br />written request to review the drag order prior to or at the time of your hearing, or you must inform the <br />Office of Office of Colorado <br />Mined Cand Reclamation Active and Inactive Mines Geological Survey <br />