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Contained in Mr. Steen's "Application for an Amendment to a Mining and Reclamation Permit" is an affidavit listing all mining claims under control of his company. The affidavit was signed July 29, 1985. In July of 1985, Gold Hill Ventures Limited Partners, represented by Mr. Steen, applied for a building permit to construct an 8400 squaze foot storage building. 7'he permit tBP 85-768) was issued August 1, 1985. On August 26, 1985, Gold Hill Ventures was issued a use permit (BP 85-804) for mining and milling. The permit stipulated that the existing north access onto Sunshine Canyon was to be used, and conditioned the permit on issuance of a limited impact permit by the Colorado Mined Land Reclamation Boazd. In October of 1985, Gold Hill Ventures applied for a remodeling permit (BP 85-1213) to convert the 8400 square foot storage building into a mill. Stipulations were placed on the permit, which included "To Process minerals extracted from the property only", and "Milling Accessory to underground mining on the same property only -- no custom milling using imported ore". The permit was issued on November 12, 1985. For some time, Mr. Steen, through business entities, had been involved with Richazd Fraser and Gwen Fraser, who had formed Colina Oro Molina (COM) Incorporated. After consideration regarding business interests, it was agreed that the mill and land associated with it (portions of the Oscar Lode and Good Enough Lode) would be transferred to the Frasers. They took recorded title on February 5, 1987. In January of 1992, the Land Use Department contacted Gwen Fraser of COM, ]nc., and Mark Steen of Gold Hill Ventures, in response to several complaints regarding the importation of ore to the Gold Hill Mill. The letter stated that importing ore would not be allowed, and that the mill, now on a sepazately owned parcel, may be in violation because milling is an accessory use to the principal use of mining. The letter also requested further information regarding these issues. James Munn, attorney for COM [nc., responded in a letter dated March 23, 1992. It contained a history of the relationship between COM Inc. and Gold Hill Ventures, and requested that the mill be allowed to import ore. On Apri! 28, 1942 the Land Use DepaRment sent a letter to Swede Johnson, who was believed to be an attorney representing COM Inc. The letter stated the Zoning Administrator's determination that ore could only be imported from land that was in the immediate vicinity and a part of the mining operation. It also stated that they had 30 days to appeal that determination to the Board of Adjustment. No appeal was fded. Rodney Knutson, attorney for Mark Steen, sent a letter to Gwen Fraser of COM Inc. on 'August 30, 1993, warning her of the problems that could arise from importing ore without appropriate approvals. On July 5, 1994, the Land Use Department sent a letter to COM Inc., requiring that they discontinue the importation of ore to the mill. On July 27, 1994, COM Inc. sent a letter to the Land Use Department stating that they were not in violation according to the state's definition of custom milling. It also stated that Building Permit 85-1213 was issued fin an out building, and therefore the conditions on the permit did not apply to the mill. On August 4, 1494, the Land Use Department sent a letter distinguishing between the department's determination of an indtistrial use as it applies to milling; and the state's definition of custom milling. In addition; the letter required records of milling activity as verification of compliance, and established deadlines for submittal.