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TATE OF COLONADC? <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 />?October 9, 2008 <br />Yoc Ma rk Balderson <br />k-N-Pine LLC <br />P.O. Box 1793 <br />Breckenridge, CO 80424 <br />Y / 0z <br />/ <br />Re: Rock-N-Pine, Permit No. M-2003-074, Annual Fee and Report, <br />Notice of Violation No. MV-2008-010, Civil Penalties, and Cease and Desist Order <br />A/ <br />Dear Mr. Balderson: <br />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />C.R.S. 34-32.5-116(3)(a) and (b), 1989 Supp. And Permit No. M-2003-074 require you to submit to the Division of <br />Reclamation, Mining and Safety (the "Division") $604.00 in annual fees and annual report on or before February 5 <br />of each year. As of the date of this letter the Division has not received your annual fees and report for February 5, <br />2007 and 2008. Therefore, you are in violation of the above cited statute and the provisions of Permit No. M-2003- <br />074. Pursuant to C.R.S. 34-32.5-124 the Mined Land Reclamation Board hereby assesses Notice of Violation No. <br />MV-2008-010, Civil Penalties in the amount of $604.00, and Notice and Order to Cease and Desist from ALL <br />mining related activities associated with Permit No. M-2003-074. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34-32.5-120) 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 map. If no new disturbances or reclamation have occurred during <br />the previous year and no new changes to the previous year's map are necessary then no new map is required provided <br />that the Operator shall state this in the Annual Report. <br />If you fail to submit your annual fee, annual report, and the Civil Penalties assessed by December 8, 2008, this matter <br />will be heard at a Formal Public Hearing before the Mined Land Reclamation Board for consideration of permit <br />revocation and forfeiture of the following warranty(ies) at the December 10, 2008 (or the following day) Board <br />Meeting: <br />Bond Type(s) <br />CA <br />Bond Number(s) <br />CA-2003074 <br />Bond Amount(s) <br />$17,100.00 <br />If you submit all past due annual fees, reports, and the Civil Penalties by December 8, 2008, this matter will be <br />withdrawn from further Board consideration. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines