2006-06-14_REVISION - M1978314

• Permit No: M1978314
• IBM Index Class Name: Revision
• Doc Date: 6/14/2006
• Doc Name: Reconsideration of Conversion 01 Application
• From: DMG esc
• To: King Mountain Gravel LLC
• Type & Sequence: CN1
• Media Type: D
• Archive: No

Porzak Browning &Bushong LLP
Gkm E. Porzelt Attorneys a t Law
Michael F. B'owniog 929 Pearl 8trce4 Suite 300 • Boulder, CO 80302
Stevrn J. Bushong 303 443-6800 • Fex 303 4431864
P. Fritz HoEeman
Kriatia Howse Moseley
Kevin J. Kinnear
Thomas w Rower June 7, 2006
Eli A. Feldtnaa
Division of Minerals and Geology
Colorado Department of Natural Resources
1313 Sherman Street, Room 215
Denver, Colorado 80203
Re: Permit No. M-1978-314 & Conversion Application 01 (CN-01)
Deaz Colorado Division of Minerals and Geology:
Lawrence J. MacDonnell
Of Comsel
lbi/ Of/ice:
846 Forest Road
Vail, CO 81657
970-477-3419 7~1.
970477-3429 Fax.
This firm represents Sleeping Lion Ranch, LLC d/b/a Bar-A-Ranch and ER
Ranch, LLC (collectively "Sleeping Lion"). I am writing on behalf of Sleeping Lion to
lodge an objection to Conversion Application Ol (CN-Ol) for Permit No. M-1978-314
(the "Application") originally filed by King Mountain Gravel, LLC ("King") in
November of 2004. As more fully described below, King does not own a legal water
supply to meet the needs of the proposed mining operation or to mitigate its impacts.
Sleeping Lion owns numerous water rights in the Egeria Creek Basin, in Routt County,
Colorado, which would be injured by King's proposed illegal use of water in the vicinity.
Sleeping Lion objects to the Application and respectfully requests the Division of
Minerals and Geology ("DMG") deny the Application due to King's failure to comply
with the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Boazd
for the Extraction of Construction Materials (the "Rules"), including but not limited to
Rules 3.1.6, 6.3.2(c), 6.3.3(i), 6.3.3 (j), 6,3.3(1), and 6.4.7.
Rule 3.1.6 requires the applicant, in this case King, to minimize disturbances to
the prevailing hydrologic balance by complying with applicable Colorado water laws. In
Exhibit G to the Application, King states "Water pumped out of Smith Creek will be used
for dust control. Water will be pumped out of the creek by a 4,000 gallon truck once per
day, or as necessary to control dust..." and that "water from Smith Creek will be pumped
for dust control purposes (see Exhibit C-3}per water rights associated with the property."
(Application at 12).
King does not identify what "water rights associated with the property" will be so
used. It appears that King may be intending to use the water rights identified in the
Triple Net Lease between King and the owner of the property involved -- Angus
Investment LLC. However, King's own water attorney admits that this water right
cannot be used for the gravel operations until and unless it is changed by the Water