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~~~~ 5~ej°c~ To Boarr; Approval said that they believed that a 112 permit was in place covering the site and was recently notified that the permit had been terminated. However, Mr. Seastone said he had been filing annual reports, including the Bueno Mine and Mill and 2 other acres, since 1987 and paying the annual fee. He said Homestate, Inc. i5 in the process of submitting a 110 permit application fora portion of the area. Mr. Bob Mason, a resident of Gold Hill, said he was addressing the Board on behalf of the Committee on Mining and the Environment of Gold Hill. He discussed hearings held during the original permitting process for the operation. Mr. Mason said the understanding was that the ores to be processed at the Cash Mill were to be local ores. Mr. John Henderson, an attorney, and Mr. Mark Steen, with Gold Hill, addressed the Board. They discussed the difficulties which exist between the co-permittees, in regard to resolving problems at this site, as well as a milling contract between the co-permittees. Mr. Henderson showed samples of rocks which he said were taken from the Cross Mine and referenced a copy of a bill of sale for the ore. At this time, the parties were given an opportunity summarize and rebut the issues presented. The Division upheld the recommendations made previously, regarding this matter. The Division addressed the regarding this matter. The been presented that ore from Cash Mill, there is no permi was noted that an amendment obtained, in order to process issue of the direction it provided, Director said that although evidence had the Bueno Mine had been processed at the t in place to mine at that site. It also to the original permit should have been other ores at the mill. Staff clarified that at no time was the Fraser interest told that Bueno Mine ore could be transported to the Cash Mill for processing. Staff said discussions centered around the actions necessary to become permittee of the Bueno Mine, in order to protect investments. Staff said the processing of ore from the Bueno Mine was not discussed. Staff said the meeting held with Energetics, Inc. representatives was in regard to prospecting at the Bueno Mine. Staff answered questions from the Board. During Board deliberations, it was noted that it may not be proper for the Board to require the co-permittees to split the permit, separating the mine from the mill. Staff said the Division has a concern about the site being brought into compliance and receiving consistent, reliable responses to adequacy concerns. It was MOVED that the Board find the co-permittees in violation for processing ore at the Cash Mill from properties other than Gold Hill Venture properties, and require that they refrain from any milling of ore not allowed under the current permit and assess a civil penalty as recommended by the Staff in the amount o` 523,370. SECONDED.