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Greg E. Walther, Executive Director <br />Robert W. Cattany, Division Director <br />June 12, 2003 <br />Page three <br />The Sand, Gravel and Aggregate Mining Lease which appears in the Division of Minerals <br />and Geology files is by sepazate agreement limited to only those mining operations permitted <br />under the original permit issued in 1998. Any expanded gravel mining operations are without <br />the consent or authority of the land owner and any operations under the amended mining plan <br />constitute trespass on the property of BLC Development, LLC. <br />5. BLC Development, LLC did not receive notice of the amended or revised permit <br />application or the amended or revised mining plan as required by C.R.S. 34-32.5-112(9)(c). A <br />question thus arises as to whether the Division of Minerals and Geology had a jurisdiction or will <br />in the future have jurisdiction to approve of any amended permit or mining plan. <br />6. BLC Development, LLC has been advised by telephone that Applicant is <br />conducting mining operations without a Gravel Well Permit required byC.R.S. 37-90-137(11) <br />for the expanded mining. This is a violation of law providing cause to revoke any Mining <br />Permit. BLC Development, LLC will supplement this by providing documents from the State <br />Engineer's Office. <br />7. The Amended Permit provides that the Boazd may suspend or revoke this permit, <br />or assess a civil penalty, upon a finding that the permittee violated the terms or conditions of this <br />permit, the Act, the Mineral Rules and Regulations or that information contained in the <br />application or your permit misrepresent important material facts. The permiee, in connection <br />with the amended permit application violated the Act and misrepresented important material fact <br />as follows: <br />(a). EXHIBIT O - OWNERS OF RECORD OF AFFECTED LAND <br />(SURFACE AREA) AND OWNER OF SUBSTANCE TO BE MINED. The Amended <br />Permit Application stated that "There is no change to this Exhibit". On the date of the <br />Amended Permit Application, BLC Development, LLC was the owner of the surface and <br />the owner of the substances to be mined. The Applicant was well aware of the record <br />ownership of the surface and the substances to be mined. This is a misrepresentation of a <br />material and important fact. <br />(b) EXHIBIT N -LEGAL RIGHT TO ENTER. The Amended Permit <br />Application stated that "There is no change to this Exhibit." The Applicant failed to <br />disclose that BLC Development, LLC had the right to approve or disapprove of the <br />Amended Mining Plan, this restriction being more fully described above. The Applicant <br />was well aware of the ownership of the property, the criterion on which the Mining Plan <br />was to be evaluated and the restrictions and authority of the owner of the property to <br />disapprove of the Mining Plan. This is a material and important misrepresentation. <br />