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~ III IIIIIIIIIIIIIIII ~ 999 Marcia Ewell P.O$.1a92 Telluride, CO 81435 lPhJFax 970.728.4567 Steve Shuey Environmental Protection specialist RECEIyE p Division of Minerals 8a Geology 7o~gcaminoo sz3~oi~o2 7.g,~aNOV 2g 1999 November 9th 1999 / cn o'MI nefals & Geology Q~~?~ =1~ ®~°E~B~~ ~l~~~l~ E=~~~ ~®~~f ~z~~: N]-~y-ll3 ~~ g d: ~~ ~ ~f°@ V@ Dear Save, NOV 0 9 1999 DivisiDon of Mine als 8 Geology As we discussed by phone today I am coaeemod there has been illegal mining acWlties ongoing at the Pathfinderpit (M-94-113) located along I~ghway 145 appro>dmately 12 miles south of the town of Telluride in San Miguel County. At this time I inquest you initiate a formal investigation to dctcrmine if there has been a violation involving "Illegal Mining". The naAUe of my complaint involves information I mewed fiom Jan Fender, an engineer who works for the Forest Servics out of Delta Co. You can contact San as 970.874.6635. I confirmed with Jan the information I discussed with you by phone. Basically, Jan informed me that during 1998 she hind a 3`~ party ooatractor, Weldon woods of Cortez, to improve the Priest Lake dam. Jan explained how she personally inspected a silt deposit for the project which was located on property bclongmg to Scott Smith just east of lira intersection where Mr. Smith's highway access road merges with the old railroad grade. Jan told me she lniroduced Mr. Woods m Mr- Smith and approved the use of the silt material for the dam improvements. She said that Mr. Woods then made compensation arrangements with Mr. Smith for the sih material. The location of this property is clearly not contained within the 8 acres of permitted area for mining (M-94-113). There has beett no sign of any reclamation work done following the extraction of the sih. I understand from James Dillie's letter dated June 26a' 1996 that Mr. Smith had fumed over the permit M-94-113 from Pathfinder Development Inc. to the new operator, Southway Construction Inc. You have informed me that Southway is sh11 carreatly the operator of record and has posted the 523,292.110 reclamation bond.. Ia reviewing Mr. Smith's letter to D.M.G. dated Oct. 1", 1999, Mr. Smith identifies Southway as the operator of record and world hold the permit with D.M.G. You have told me that Pathfinder Inc. has no bond with the State ar this time. Yet it i9 Pathfinder Imo. that apparently performed the work listed on the next page. In the same Oa. 1, 1999 ktter, Mr. Smith also states, "The pit has ant idle since 1996 becmrse of Smr Miguel Corurty concerns, Nothing has chmrged re: mvmig', distrnbed acreage, etc. as rw mining activity has ensued since August of 1996 ". My observations 6/L 30tld GBSbBLL0L6'OI 'r-I3M3 tlI7MtlW'WOa3 L0•Sl 66-60-hUN