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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 />June 10, 2010 <br />Mr. Mike Clements <br />Wildcat Mining Corporation <br />108 Linda Court <br />Du9 ango, CO 81301 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Reason To Believe.a Violation Exists, Wildcat Mining Corporation, Permit No. M-1981-185, May Day <br />Mine, REVISED Scheduling of Board Hearing <br />Dear Mr. Clements: <br />On June 3, 2010, the Division of Reclamation, Mining and Safety (Division) conducted an inspection of the May <br />Day Mine and found that an unpermitted portal was being constructed/rehabilitated in a location that is not <br />within the approved permit boundary for the May Day Mine. <br />The Division believes this is in violation of the Colorado Mined Land Reclamation Act, specifically: C.R.S. 34-32- <br />109(1), for failure to first obtain a reclamation permit prior to engaging in a new operation, or C.R.S. 34-32- <br />116(7)(h), for failure to protect areas outside of the affected land from slides or damage during the mining and <br />reclamation operation; and pursuant to C.R.S. 34-32-124(1) is in violation of the Colorado Mined Land <br />Reclamation Act for failure comply with the permit conditions of Reclamation Permit No. M-1981-185. <br />Therefore, the Division has found reason to believe a violation exists to the Law and has scheduled this matter <br />before the Mined Land Reclamation Board (Board) <br />A Formal Board Hearing will be held during the JULY 12, 2010 Board meeting for consideration of a possible <br />violation. The hearing will be held at 1313 Sherman Street, Room 318, Denver, Colorado, beginning at 9:00 <br />a.m. or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to <br />be represented and heard. It will be reiterated that there is reason to believe that you are in violation of the <br />provisions noted above. <br />If the Board finds a violation of C.R.S. 34-32-109(1), for failure to first obtain a reclamation permit prior to <br />engaging in a new operation, it may issue a Cease and Desist Order and assess a Civil Penalty in the amount of <br />$1,000 to $5,000 for each day of violation. <br />If the Board finds a violation of C.R.S. 34-32-116(7)(h), for failure to protect areas outside of the affected land <br />from slides or damage during the mining and reclamation operation, it may issue a Cease and Desist Order and <br />assess a Civil Penalty in the amount of $50 to $200 for each day of violation. In addition, if the Board finds a <br />violation pursuant to C.R.S. 34-32-124(1) for failure to comply with permit conditions, they may suspend, <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines