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Reclamation Permit was transferred to Frank H. Ewes. On September 1Q 2004, the <br />Section 110 Reclamation Permit was transferred to the Applicant. On November 23, 2004, <br />the Applicant submitted a conversion application to fllc Division converting the Section <br />l 10 Reclamation Permit into a Section l 12 Reclamation Permit. The conversion <br />application sought to increase the permitted area from 9.9 acres to 341 acres. The <br />conversion application was approved by the Division on March 15, 2005, and the bond <br />was set at $327,000.00. No objections were filed during the public comment period. <br />4. Construction Materials Rule 4.1(2) requires an applicant to submit financial warranties <br />within one yeaz of permit approval. If financial warranties are not received within one <br />year, the Board must hold a hearing to reconsider the previous permit approval. <br />On Mazch 9, 2006, the Applicant submitted an Irrevocable Letter of Credit ("LC") to the <br />Division to satisfy its financial warranty obligation. The Division determined that the LC <br />was inadequate, and so informed the Applicant in a letter dated March 14, 2006. <br />6. The deadline for submission of the financial warranty was March 15, 2006. <br />On March 27, 2006, the Division received the corrected financial wan-anty for the site, past <br />the financial warranty due date. <br />8. On Apri126, 2006, the Division sent a notice of reconsideration of the conversion <br />application to the Applicant. The Applicant sought reconsideration ofthe Division <br />decision, but did not appeal the Division's subsequent affirmation of the decision to hold a <br />hearing on the matter pursuant to Construction Materials Rule 4.1(2). <br />9. The Applicant published a new public notice in a newspaper of general circulation in the <br />area (the Steamboat Pilot) pursuant to Construction Materials Rule 1.6 and received timely <br />public comments or objections from interested persons in the area. <br />King Mountain Gravel, LLC <br />M-1978-314 <br />