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,~: _. ~ DIVISION OF MINERALS AND GEOLOGY O.~parlmCOl ui N,Ilur,ll RlhOUlCeS I I I f $hi•rman $L, Room _' l i D~•nvir. Gdnrarlu H02113 Phunn:I 111E Hhh~lih7 January 28, 1998 ~~~ ~~~~~~~~~~~~~~~~ LTE (fir COLORADO 999 ~_ UIV~ DEPAATI~tENi' OF NATURAL RESOURCES Rny Ramer Governor Harry Castle lames $. Lochhead Walker Mining and Milling E.ecmrve Direcmr 1653 Count Road 5 ~uchael s Ean% Y Drv~sron Dirccror Ridgeway, CO 81432 RE: Reason to Believe a Violation Exists -Failure to Increase Financial Warranty Ruby Trust Mine -Permit No. M-79-181 Dear Mr. Castle: On November 6,1997, DMG provided notice to increase the financial warranty for the Ruby Trust Mine from the existing $2,500 to $9,481. The silty (60) day period following the notice, provided by the Act and Rules and Regulations, has expired. However, DMG records do not indicate that the financial warranty has been increased to total $9,481. We believe that this is a violation of Section 3432-117(4)(c)(II) of the Colorado Land Reclamation Act, 34-32-101 et seg., C.R.S. (1995 Repl. Vol.), and Rule 4.2.1(2) of the Hard Rock/Metal Mining Rules and Regulations of the Colorado Mined Land Reclamation Board. Therefore, we have found reason to believe a violation exists to the Law and have scheduled this matter before the Mined Land Reclamation Board. A Formal Public Hearing will be held during the March 25-26, 1998 Board Meeting for consideration of a possible violation. The hearing will be held at 1313 Sherman Street, Room 318, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be considered, and you will have the opportunity to be represented and heard. During the hearing, it will be reiterated that there is reason to believe that you are in violation of the provisions noted above. If the Board finds a violation at the hearing, it may issue a cease and desist order and assess a civil penalty of not less than $100.00 per day nor more than $1,000.00 per day for each day during which such violation occurred. Concurrently with the issuance of such an order, the Board or Office may seek a restraining order or injunction. In addition to the civil penalty, the Board may assess any costs incurred by the Board or Office in carrying out corrective action against the violator. If you have evidence indicating that the possible 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.