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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 8663567 FAX: (303) 832106 May 27, 2004 Christopher L. Vaasa Varra Companies, Inc. 8120 Gage Street Frederick, CO 80516 Bill Owens Governor - Russell Geolge Executive Director Ronald W. Canany Division Dln?C[Or Natural Resource Truuee RE: Reasou To Believe a Violation Exists, Permit No. M-78-056, Durham Pit, Class: Euforcemeat Deaz Mr. Varra: On May 11, 2004 the Division of Minerals and Geology conducted an inspection of your mine and found: The current configuration of the existing flood control dike is not in compliance with the approved constmctron specifications. In particular, the flood control dike averages 15.7 feet above the bed of the Cache La Poudre River while the approved plan specifies that the dike be raised to a point approximately 9 feet above the bed of the Cache La Poudre River. This configuration creates a potenfial for adverse offsite damage to surrounding property owners during future storm events, No temporary control measures, as requested in the Division's January 23, 2004 inspection report, had been implemented to minimize the potential for possible adverse flood related impacts during the 2004 nrrroff season. The Division believes this is in violation of Section 34-32.5116(1) and 34-32.5-116(4)(1) of the Colorado Land Reclamation Act for the Extraction of Construction Materials, Rule 3.1.5(3) of the Mineral Rules And Regulations for the Extraction of Construction Materials, and the Permit for failure to follow the reclamation prescribed by the reclamation plan. Specifically, for failure to limit [he height of the constructed flood control dike to no more than 9 feet above the bed of the Cache La Poudre River. Therefore, the Division has found reason to believe a violation exists to Permit M-1978-056 and the Law and has scheduled this matter before the Mined Land Reclamation Board. A Formal Public Hearing will beheld during the July 28-29, 2004 Boazd meeting for consideration of possible violation. The hearing will be held in Room 318 of 1313 Shemtan Street; Denver, Colorado begimming at 10:00 a.m. on the 28'", and 9:00 a.m on the 29fth, or as soon thereafter as the matter can be considered, and you will have the opportunity to be represented and heard. It will be reiterated that there is a reason to believe that you are in violation of the provisions noted above. If [he Board finds a violation at this hearing, it may issue a cease and desist order, assess a civil penalty in the amount of $100 to $1000 for each day of violation, or order the pemtit be suspended, modified or revoked. If you have evidence indicating that the possibie violation noted above does not exist or has been corrected, please provide it to us as soon as possible or bring it to the hearing. Following the hearing, all parties have an opportunity to review and comment on a draft of the Board's order before it is issued. If you wish to do so, you must provide the Boazd a written request to review the draft order ar your hearing. You must include your mailing address and, if possible, a fax number or email address. You will be provided a copy of the draft order for your review as soon as it is available. The Boazd must receive any comment within five days following your receipt of the draft order, unless that deadline is extended. Submit all comments in writing to Tyson Powell, Assistant Attorney General, 1525 Sherman Street, 5'" Floor, Denver, CO 80203, FAX # (303) 866-5395. The Boazd will resolve any issues regazding the form of the order. This process does not affect you right to request reconsideration by the Hoard or appeal [he substance of the order. If you have any questions please contact Tom Schreiner S' cere] RONALD W. CATTANY Division Duector CERTTFIED MAIL NO. 7002 2410 0005 9145 7812 Returned Receipt Requested COLORADO DIVISION O F MINERALS dL GEOLOGY RE CLAN ATION•NINING SAf ETY•SCIENCE Office of Office of Colorado Mined Land Reclamation Active and Inactive Mines Geological Survey