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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 86&3567 <br />fA%: (303) 8328106 <br />August 11, 2006 <br />Mr. Nick H. Gray <br />Nick H. Gray <br />584 65.30 Rd. <br />Montrose, CO 81401 <br />Re: Gray Pit #1, Permit No. M-2003.092, Annual Fee and Report, <br />Noflce of Violation No. MV-2006-045, Civil Penalties, and Cease and Desist Order <br />Dear Mr. Gray: <br />BIII Owens <br />Governor <br />Rwsell George <br />Exmaive Director <br />Rorsald W. Canny <br />Division Dirtttpr <br />Narunl Resource Trustee <br />C.R.S. 34-32.5-116(3)(a) and (b),1989 Supp. And Permit No. M-2003-092 require you to submit to the Division of <br />Reclamation, Mining and Safety (the "Division's $688.00 in annual fees and annual report on or before June 29m of <br />each year. As of the date of this letter the Division has not received your annual fees and report for June 29, 2006. <br />Therefore, you are in violation of the above cited statute and the provisions of Permit No. M-2003-092. Pursuant to <br />C.R S. 34-32.5-124 the Mined Land Rechunation Board hereby assesses Notice of Violation No. MV-2006.045, Civil <br />Penalties in the amount of $688.00, and Notice and Order to Cease and Desist from ALL mining related activities <br />associated with Permit No. M-2003-092. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO IS CURRENTLY FOUND TO BE IN VIOLATION I1V THIS STATE (C.RS. 34-02.5-120) UNTIL THE <br />VIOLATION IS ABATED. The Annual Report and Fee requirement is not met until we have received the <br />following components: fee. report. and associated maD. If no new disturbances or reclamation have occurred during <br />the previous year and no new changes to the tmviousyeats map are necessary then no new moo is required. Qrovided <br />that the ODerator shall state this in the Annual Report. <br />If you fall to submit your amtllal fee, annual report, and the Civil Penalties assessed by September 11, 2006, this <br />matter will be heard at a Fom~al Public Hearing before the Mined Land Reclamation Board for rnnsidetation of <br />permit revocation and forfeiture of the following warranties at the October 18, 2006 (or the following day) Boazd <br />Meeting: <br />Bond 1~De(sl <br />CD <br />CD <br />cjrm , cl~Mr ~ cQcelb, fv>~ ~~~ <br />COLORApO <br />DIVISION Oi <br />Bond Nnmber(sl <br />3022179902 <br />535251789 <br />Bond Amount(sl <br />$28,125.00 <br />$24,528.00 <br />If you submit all past due annual fees, reports, and the Civil Penalties by September 11, 2006, this matter will be <br />withdrawn from further Board consideration. <br />Office of t~tRce of <br />Mined Land Reclamation Active and Inactive Mines <br />