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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />September 15, 2004 <br />COLORADO <br />DIVISION O F <br />MIN SRALS <br />GEOLOGY <br />REC LANATION•NINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Mr. Mike Ausburn <br /> <br />Pioneer Sand Company, IIIC. Russell George <br />Executive Director <br />P.O. Box 7650 <br />Ronald W. Cottony <br />Colorado Springs, CO 80933 Division Director <br /> Natural Resource Trustee <br />Re: Phillips Ranch Properly Gravel Pit #2, Permit No. M-2000-046, Annual Fee an d Report, Notice of <br />Violation No. MV-2004-047, Civil Penalties, and Cease and Desist Order <br />Deaz Mr. Ausbutn: <br />C.R.S. 34-32.5-116(3)(a) and (b), 1989 Supp. And Permit No. M-2000-046 require you to submit to the Division of <br />Minerals and Geology $281.00 in annual fees and annual report on or before June 16, 2004 of each year. As of the <br />date of this letter the Division has not received your annual fees and report for June 16, 2004. Therefore, you are in <br />violation ofthe above cited statute and the provisions ofPermitNo. M-2000-046. Pursuant to C.R.S. 34-32.5-124 the <br />Mined Land Reclamation Boazd hereby assesses Notce ofViolation No. MV-2004-047, Civil Penalties in the amount <br />of $281.00, and Notice and Order to Cease and Desist from ALL mining related activities associated with Permit No. <br />M-2000-046. <br />NOTE: NO PERMTTS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.RS.34-32.5-120) UNTIL THE <br />VIOLATION IS ABATED. <br />If you fail to submit your annual fee, annual report, and the Civil Penalties assessed by October 15, 2004, this matter <br />will be heazd at a Formal Public Hearing before the Mined Land Reclamation Boazd for consideration of permit <br />revocation and forfeiture of the following warranty(ies) at the October 27, 2004 (or the following day) Boazd <br />Meeting: <br />Bond Twe(s) Bond Number(s) Bond Amount(s) <br />CS $26,443.00 <br />If you submit all past due annual fees, reports, and the Civil Penalties by October 15, 2004, this matter will be <br />withdrawn from further Board consideration. <br />Office of Office of Colorado <br />Mined Land Reclamation Artive and Inartiva Mines r:enlnviral Gnrvev <br />