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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER <br />IN THE MATTER OF RECONSIDERATION OF PREVIOUS DIVISION APPROVAL OF <br />PELINO INC.'S 112C CONVERSION APPLICATION BECAUSE FINANCIAL <br />WARRANTY WAS NOT POSTED WITHIN ONE CALENDAR YEAR OF APPROVAL, <br />File No. M-1984-043 <br />THIS MATTER came before the Mined Land Reclamation Board ("Board") on <br />January 6, 2010 in Denver, Colorado for a hearing to reconsider the Division of Reclamation <br />Mining and Safety's ("Division") previous approval of a conversion application because the <br />financial warranty was not posted within one calendar year of approval. The file number is <br />M-1984-043. Scott Pelino appeared on behalf of Pelino Inc. ("Operator"). Peter Hays <br />appeared on behalf of the Division of Reclamation, Mining and Safety ("Division"). <br />The Board, having considered the parties' presentations and having been otherwise <br />fully informed of the facts in the matter, enters the following: <br />FINDINGS OF FACT <br />1. The Operator has a Section 110c reclamation permit for a 9.8-acre sand and <br />gravel operation known as the Jesse Lee pit, permit number M-1984-043. The site is located <br />in Section 33, Township 14 North, Range 78 West, 6`n Principal Meridian, in Chafee County, <br />Colorado. The site is about three miles south of Buena Vista, Colorado, and sits between US <br />Highway 285 and the Arkansas River. <br />2. Responding to a citizen complaint, the Division inspected the site in May 2006 <br />and found the Operator was mining outside of the approved boundary. In July 2006, the <br />Board found the Operator in violation of § 34-32.5-109(1), C.R.S., for mining without a <br />permit and issued an Order on August 16, 2006 (the 2006 Order) which included a Cease and <br />Desist Order prohibiting further mining activities outside of the approved permit boundaries <br />until the entire site was properly permitted. The Board ordered the Operator to obtain <br />approval of a Section 112c reclamation permit for the entire operation within 160 days of the <br />signed Board Order. The Board ordered the Operator to pay $56,132.80 in civil penalties, <br />suspending all but $3,132.80 if the Operator completed the corrective actions in a timely <br />manner. The Operator paid the unsuspended portion of the civil penalty in September 2006. <br />3. The Operator submitted the required conversion application (CN-01) in <br />September 2006 to address the disturbed areas outside the permit area and add new acreage <br />for future mining development. The Operator proposed adding 6.6-acres to the permit for a <br />Pelino Inc. <br />Reconsideration of Previous Division Approval <br />M-1984-043