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PEem.r STATE OF COLORADO DIVISION OF MINERA(5 AND GEOLOGY / Departrnent of Natural Resources 7373 Sherman St., Room 215 Denver, Colorado 80203 Phone: (30318663567 FAX: (303) 832.8106 December 20, 2005 ~ Mr. Bill Te2ak Colorado Quarries, Ina / 270 South 15'h Street Canon City, CO 81212 /~ /~ Re: Reason To Believe a Violation Exists, Permit No. M-1987-027, Hardship Lode. Deaz Mr. Tezak: RAD O O N O F RALS GEOLOGY AECLAn ATIO N•nININO fAiETI•f CIENCE Bill Owens Governor Russell George Executive Director aanala w. canary Division Director Natural Resource Trustee On August 24, 2005, the Division of Minerals and Geology conducted an inspection of your mine and found that the permit boundary markers did not adequately delineate the permit boundary, and several areas of disturbance were observed that appeared to potentially be outside the permit boundary. A problem was noted and you were instructed to provide a map depicting the outline of the disturbance and the permit boundary. 'The map you provided to this office clearly shows 2.03 acres ofmining-related disturbance outside the approved permit boundary. The Division believes this is a possible violation of Section 34-32.5-109(1) of the Colorado Land Reclamation Act for the Extraction of Construction Materials, C.R.S, 34-32.5-101 et sea,, for failure to first obtain a permit prior to engaging in a new operation, or a possible violation of Section 34-32.5-116(4)(1) of the Colorado Land Reclamation Act for the Extraction of Construction Materials, C.R.S. 34-32.5-101 et sea., Rule 3.1.5(3) and Permit No. M-2003- 094 for failwe to protect areas outside the affected ]and from slides or damage occumng during the mining operation and reclamation. Therefore, the Division has found reason to believe a violation exists to Permit M-1987-027 and the Law and has scheduled this matter before the Mined Land Reclamation Board. A Formal Public Hearing will be held during the February 15-16, 2006 Boazd meeting for consideration of a possible violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado beginning at 10:00 a.m. on Wednesday February ISth, and 9:00 a.m. on Thursday February 16th, or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to be represented and heazd. It will be reiterated that there is reason to believe that you are in violation of the provisions noted above If the Board fmds a violation at this hearing, it may issue a Cease and Desist Order, assess a Civil Penalty in the amount of $1000.00 to $5000.00 for each day of violation for failure to first obtain a permit prior to engaging in a new operation, or assess a Civil Penalty in the amount of $100.00 to $1000.00 for each day of violation and order the permit suspended, modified, or revoked for failure to protect aeeas outside the affected land. If you have evidence indicating that the possible violations noted above do not exist or have been corrected, please provide it to the Division as soon as possible or bring it to the hearing. Following the hearing, the parties will have an opportunity to review and comment on a draft of the Board's order if requested. If you wish to do so, you must pro7ride the Boazd with a written request to review the draft order at or before your hearing, or you may request to review the draft order at the hearing. You must include your mailing address and, if possible, a fax number. You will be provided a copy of the draft order for your review as soon as it is available. Please note that the Division has requested the opportunity to review the draft order in this matter. The Office of Office of Colorado Mined Land Reclamation Attive and Inactive Mines Geological Survey