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r a UNPERMITTED CONSTRUCTION MATERIAL EXTRACTION OR EXPLORATION OPERATION /~resentation Form GENERAL INFORMATION Inspection Date: May 19,,2006 Operator: Pelino, Inc. t/ Commodity: Sand & Gravel County: Chaffee Specialist: Erica Crosby File No.: M-1984-043 Landowner: Clarence Champion Acres affected: 13.14 Method of Mining: Surface WAS THIS CASE THE RESULT OF A ROUTINE INSPECTION? NO OR COMPLAINT? YES /~--iz-z~co DIVISION'S REASON FOR BRINGING THIS TO THE BOARD AS MINING WITHOUT A PERMIT VERSUS MINING OUTSIDE THE PERMIT BOUNDARY (DMG Policy -For any 110-type operation, if the operator affects greater than two (2) acres, the operator shall be found for mining without a permit. For all other permitted operations, mining without a pemvt shall be determined on a case-by-case basis. Items to consider include the amount of disturbance, type of disturbance, ownership of the disturbed azea, impact to the surrounding azea due to the disturbance, degree of any health or safety hazard.) NATURE OF UNPERMITTED (Construction Materials Extraction C.M.E. or Exploration Operation E.O.) Est. Acreage disturbed (Do not use for permitted sites) Est. Vol. Removed Est. Ac. outside permit boundary- 3.34 acres SERIOUSNESS Operator conducted activity on own property no, on others property y-es Site activity, describe- The operator failed to contain the mining and processing operations within the designated permit azea of 9.8 acres. Mining related activity created a total disturbance of 13.14 acres. Area wide impacts, describe -The operator disturbed 3.34 additional acres that were not originally permitted including roads and waste piles. Health or safety hazazd, describe -None STATUTE VIOLATED AND DESCRIPTION X C.R.S. 34-32.5-109(1) mining without a permit. C.R.S.34-32.5-113(1)exploring withoutan approved NOT. C.R.S. 34-32.5-109(1), or 113(1) Pelino. Inc. (Operator) is conducting a minine operation in the following location: Section 33 ,Township 14 South, Range 78 West, 6th P.M.