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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 C O L D RA D O <br />Denver, Colorado 80203 DIVISION O F <br />Phone: (303) 866-3567 MINERAL S <br /> <br />FAX: (303) 832-8106 G E O L O G Y <br /> 0.ECLAMATIO N•MINING <br /> SAFETY•SCIEN CE <br /> Bill Owens <br /> Governor <br />June 23, 2004 <br /> • Russell George <br /> Executive Director <br />Lowry Contractors <br />AtM: Ron Jackson Ronald W. Cottony <br /> Division Direcor <br />625 Illinois Avenue Natural Resource Trustee <br />Salida, CO 81201 <br />RE: Reason to Believe a Violation Exists at the Tom Smith Pit; DMG File # M-2004-045 <br />Deaz Mr. Jackson: <br />On June 10, 2004 the Division of Minerals and Geology conducted an inspection of [he Tom Smith Property Pit located <br />approximately 2 miles northeast of South Fork, Colorado and found the following: <br />Lowry Contractors had been conducting training and reclamation operations on a portion of Section 29, Township 40 N, <br />Range 4 E in Rio Grande County, Colorado. <br />We believe that this is a violation of C.R,S. 34-32.5-109(1) For failure [o obtain from the board or office a <br />reclamation permit prior to engaging in a new mining operation. Specifically, significant mining and reclamation <br />operations had occurred on a piece of property adjacent to the Rio Grande River near South Fork, Colorado on property <br />owned or controlled by Tom Smith. <br />Therefore, we have reason to believe that a violation exists to DMG File Number M-2004-045 and to the Law, and have <br />scheduled this matter to appear before the Mined Land Reclamation Board, <br />A Formal Public Hearing will be held during the July 28`s and 29'", 2004 Board Meeting for consideration of a possible <br />violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 10:00 a.m. <br />on July 28th or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to be <br />represented and heard. It will be reiterated that there is reason to believe that you are in violation of the provisions <br />noted above. <br />If the Board finds a violation at this hearing, it may issue a Cease and Desist Order and/or assess a Civil Penalty in the <br />amount of $ 1000.00 [o $5,000.00 for each day of violation. If you have evidence indicating that the possible violations <br />noted above do not exist or have been corrected, please provide it to us as soon as possible or bring it to the hearing. <br />Following the hearing, all parties have an opportunity to review and comment on a draft of the Board's order before it <br />becomes final. /f you wish to do so, you must provide the Board with a written request to review the draft order prior <br />to or at the time ofyour hearing, oryou must inform the Boardorally during the hearing thatyou request to review the <br />draft order. You must include your mailing address and, if possible, a fax or email address. You will be provided a <br />copy of the draft order for your review as soon as it is available. The Board must receive your comments on the draft <br />order within ten (10) calendar days of the date the draft order is mailer!, unless that deadline is extended. Please note <br />that the Division ofMinerals and Geology has requested and will be allowed to review and comment on the draft <br />Board Order prior to mailing to any party. Submit all comments in writing to Mr. Tyson Powell, Assistant Attorney <br />General, /525 Sherman Street, 5`" Floor, Denver, Colorado 80203, or FAX #(303) 866-5395. The Board will resolve <br />any issues regarding the form and substance of the order. This process does not affect your right to request <br />reconsideration by the Board or appeal the form or substance of the order. <br />Office of <br />Mined Land Reclamation <br />Office of <br />Active and Inactive Mines <br />Colorado <br />Geological Survey <br />