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