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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) 866-3567
<br />FAX: (303) 832-8106
<br />May 19, 2008
<br />COLORADO
<br />D IV IS I ON OF
<br />RECLAMATION
<br />MINING
<br />SAFETY
<br />Bill Ritter, Jr.
<br />Governor
<br />Harris D. Sherman
<br />Mr. Kye Abraham Executive Director
<br />LKA International, Inc. Ronald W. Cattany
<br />3724 47`s St. Ct., NW Division Director
<br />Gig Harbor, WA 98335 Natural Resource Trustee
<br />Re: Reason To Believe a Violation Exists, Permit No. M-1978-091UG, Golden Wonder Mine.
<br />Dear Mr. Abraham,
<br />On May 6, 2008, the Division of Reclamation, Mining and Safety conducted an inspection of your mine and found
<br />approximately 0.46 acres of mining-related disturbance outside the permit boundary.
<br />The Division believes this is a possible violation of Sections 34-32.5-116(4)(g), (h), and (i) of the Mined Land
<br />Reclamation Act, C.R.S. 34-32.5-101 et sea., Rule 3.1.5(3) and Permit No. M-1978-091UG for failure to minimize the
<br />adverse impacts to the hydrologic balance, failure to protect areas outside the affected land from slides or damage
<br />occurring during the mining operation and reclamation, and failure to stabilize and protect the surface of the affected
<br />land from erosion and water pollution.
<br />The DRMS, therefore, has reason to believe a violation exists to the law or Permit No. M-1978-091UG, and has
<br />scheduled this matter before the Mined Land Reclamation Board.
<br />A Formal Public Hearing will be held during the July 9-10, 2008 Board meeting for consideration of a possible
<br />violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado beginning at 9:00 a.m. or
<br />as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to be represented and
<br />heard. It will be reiterated that there is reason to believe that you are in violation of the provisions noted above.
<br />(Please note that you may waive your right to a 30-day notice of the hearing, by submitting a written waiver to this
<br />office, and the matter may be scheduled for a hearing at the June 11-12, 2008 Board meeting.)
<br />If the Board finds a violation at the hearing, it may issue a Cease and Desist Order, assess a Civil Penalty in the
<br />amount of $100.00 to $1000.00 for each day of violation and order the permit suspended, modified, or revoked for
<br />failure to protect the hydrologic balance, surface erosion causing pollution, and areas outside the affected land. If you
<br />have evidence indicating that the possible violations noted above do not exist or have been corrected, please provide it
<br />to the Division as soon as possible or bring it to the hearing.
<br />Following the hearing, the parties will have an opportunity to review and comment on a draft of the Board's order if
<br />requested. If you wish to do so, you must provide the Board with a written request to review the draft order at or
<br />before your hearing, or you may request to review the draft order at the baarfi?g; You must include your mailing
<br />address and, if possible, a fax number. You will be provided a copy of the draft ordei for your review as soon as it is
<br />available. Please note that the Division has requested the opportunity to reviec*=the draft order in this matter. The
<br />Board must receive any written comment within seven days following the mailing of the draft order, unless that
<br />deadline is extended for good cause. Submit all comments in writing to Roxane Baca, Assistant Attorney General,
<br />1525 Sherman Street, 7th Floor, Denver, CO 80203, telephone no. (303) 866-5696, fax no. (303) 866-5395. The
<br />Board will resolve any issues regarding the form of the order. This process does. not affect your right to request
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<br />Office of
<br />Mined Land Reclamation Office of
<br />Denver Grand Junction Durango Active and Inactive Mines
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