2006-06-12_REVISION - M1978314 (3)

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Mined Land Reclamation Board June 12, 2006 Page 3 conservation and environmental groups. Toponas is renowned for its wildlife, aesthetic beauty, and ecological conservation. A gravel operation expansion will adversely affect the aesthetics of the Ranches and all of those groups' enjoyment of the area. Sixth, the proposed gravel pit expansion will have a severe impact on the Sage and Sharptail Grouse populations in its vicinity, which species have been petitioned for endangered species designation and protection. The Ranches (and the ranch and agricultural communities generally) are concerned about preservation of those wildlife species because, among other reasons, if the populations decline any further the Ranches will likely be forced to alter their ranching and other businesses (or cease them altogether) as a result of increased land restrictions implemented to protect the grouse. Seventh, as discussed below, Bar-A-Ranch and ER Ranch own numerous water rights in the Egeria Creek Basin that will be injured by King Mountain's proposed use of water in the vicinity. Thus, the Ranches will be aggrieved by the expansion of King Mountain's gravel operation and, therefore, request that the Board grant them party status with respect to the Permit Conversion Application. B. 1{ine Mountain's Permit Conversion Application Should Be Denied. 1. The Board Does Not Have Jurisdiction At This Time To Approve King Mountain's Permit Conversion Application. As the Board is aware, in May 2004, Frank W. Hewes ("Hewes") sold the property at issue to Angus Investment, LLC, which subsequently leased the related mining operation to King Mountain. z On September 10, 2004, the Division of Minerals and Geology (the "DMG") approved a transfer of the 110 Permit from Hewes to King Mountain. As a result of that transfer, King Mountain became the permitted operator of the gravel pit no earlier than that date, September 10, 2004. Thereafter, on November 23, 2004, King Mountain filed its Conversion Construction Materials Application with the DMG requesting to expand the permitted boundary area by approximately 3,400%, from 9.9 acres to 341 acres, 184 acres of which are proposed to be mined. On that date, King Mountain had been operating the gravel pit under the 110 Permit for only approximately two months. C.R.S. §34-32.5-110(5)(a) (the Colorado Mined Land Reclamation Act (the "Act")) expressly states that "[a]ny operator conducting an operation under a permit issued under this section [Section 110 permit] who has held the permit for two consecutive years or more and who subsequently desires to expand it to a size in excess of the limitation set forth in subsection (1) of this section may request the conversion of the permit...." (emphasis added). Under that s On information and belief, King Mountain is simply a shell corporation through which [he gravel pit is operated, while all of its assets are held in Angus Investment, LLC, the lessor and owner of the property. \\\DE ~ 2R°6°/0°°1- 265818 vl