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<br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherrrtan St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 12, 2008 <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />- ~- <br />SAF ETY <br />Bill Ritter, )r. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />s. Deanna Van Ella Ronald W. Cattany <br />180 Lane 200 Bass Lake Division Director <br />Natural Resource Trustee <br />Angola, IN 46703 / <br />RE: Email request received May 9, 2008, Permit No. M-1992-045, Gold Basin Mine <br />Dear Ms. Van Ella: <br />The Division of Reclamation, Mining and Safety (Division) has received your email of May 9, 2008 <br />asking what quickest and least costly way to get a permit back on this site would be if Gold <br />Mountain Metals, Inc. (GMM) will not sign a Succession of Operator request for Permit M-1992- <br />045. You have some options in this case, none of which are completely predictable as to their <br />speed or cost. <br />You could demonstrate to the Division with appropriate legal documents that GMM has lost its <br />legal right to enter and mine the property in question. In that case, the Division would request <br />that GMM demonstrate that it still maintained legal right to enter through appropriate <br />documentation. If there was a question as to which entity had legal right to enter (yourself or <br />GMM) then the Division could not make a decision as to who had the legal right to enter and this <br />would have to be decided by a court of law. Once the Division was presented with a court order <br />that established who had legal right to enter, the Division would act appropriately, either taking <br />enforcement action to eventually revoke the permit and forfeit the bond or refusing to take <br />enforcement action. <br />Also, you could file your own new permit application that included all areas that you wished to <br />operate on, go through the permitting process, post an appropriate bond, and obtain a different <br />permit. The problem with this is that the property then would be double permitted and double <br />bonded and the Division would hold. each operator separately responsible for anything that <br />happened on those parts of the permit areas that overlapped. In other words, the Division would <br />not try to determine which operator was responsible for the disturbances but would hold both <br />operators equally responsible for disturbances in their permit areas. The Division does not <br />recommend double permitting of mine or prospecting sites. <br />STATE OF COLORADO <br />Office of <br />Office of Active and Inactive Mines <br />Mined Land Reclamation Denver Grand Junction Durango <br />