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October 31, 2005 Mr. Russell George RECEIVED Executive Director Department of Natural Resources ~~T 3. t 205 1313 Shennan St, Room 7l8 Denver, CO 80203 Division ~f Mixerels and Geefagy RE: Lupton Lakes Resource, Permit No. M - 2004 - 078 Deaz Mr. George: A mining pemut was issued on October 17, 2005 by the Mined Land Reclamation Boazd (NLRB) to SW TKO Joint Venture, LLC (developer). The developer's application to the NLRB indicated that somewhere between one million to two million tons of aggregate per yeaz is anticipated as a production level. Actual mining, involving movement of dirt, started on October 17, 2005 and is continuing. This commencement of mining placed SW TKO Joint Venture, LLC in violation of Colorado Revised Statute 25-7-114.2 - i.e., commencing construction of a sand and gravel mining operation without obtaining an air quality permit. Being inviolation ofC.R.S. 25-7-114.2 also placed the developer in violation of the NLRB permit stated above for the following two reasons: I . Section G of the permit RECITALS states: "The issuance of this permit does not relieve the Perminee from having to comply with all applicable Federal, State and County statutes, including State Water Law. " 2. In addition, in a May 3, 2005 letter to Mr. Mazk D. Campbell, signed by Erica Crosby, it stated that "SW TKO Joint Venture, LLC has committed to obtaining Air Pollution and Water Quality permits from the Colorado Department of Public Health and Environment. It is State law that the Air Pollution Emission Notices are obtained prior to emitting fugitive dust. ' Attached is a copy of a letter addressed to the Air Pollution Control Division (APCD) of the Colorado Department of Public Health and Environment showing the location, extent of mining as of October 22, 2005 and two notices ofPublic Hearing before the city of Fort Lupton. It appears that