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5. On July, 20, 2010, the Division sent a letter to the Operator, informing <br />the Operator of the bond cancellation and informing the Operator that a <br />replacement warranty needs to be submitted thirty (30) days prior to the effective <br />date of the cancellation. <br />6. On December 9, 2010, the Division sent the Operator written notice <br />that the replacement warranty is due by December 14, 2010. <br />7. On January 5, 2011, the Division updated the reclamation bond, <br />estimating that $8,344.24 is required to reclaim based on conditions at the site as of <br />December 1, 2010. <br />8. On January 7, 2011, the Division sent a Reason to Believe a Violation <br />Exists letter to the Operator, a copy of which was sent to Washington Mutual. The <br />letter notified the Operator and Washington International about the date and <br />location of the February 9, 2011 hearing. Such notice was provided to the <br />Operator and the financial warrantor at least thirty (30) days before the hearing, <br />in accordance with section 34-32.5-118(2), C.R.S. <br />9. The financial warranty for the Olathe Pit expired on January 13, 2011. <br />The Operator failed to post a replacement bond by January 13, 2011 or anytime <br />thereafter. <br />CONCLUSIONS OF LAW <br />10. The Board has jurisdiction over this matter pursuant to sections 34- <br />32.5-104, -105, and -124 of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, Article 32.5 of Title 34, C.R.S. (2010) ("Act"). <br />11. Pursuant to section 34-32.5-117(6), C.R.S., an operator must maintain <br />a financial warranty in good standing for the entire life of a permit. The Operator <br />failed to maintain a financial warranty in good standing for the entire life of permit <br />number M-1984-108. <br />12. The Board may find a violation and impose a penalty when it finds that <br />an operator has failed to comply with the conditions of an order, permit, or regulation. <br />13. By failing to maintain a financial warranty in good standing for the <br />entire life of the permit, the Operator violated permit number M-1984-108. <br />14. Pursuant to section 34-32.5-124(6), C.R.S., upon a finding that a permit <br />has been violated, the Board may order such permit suspended, modified, or revoked. <br />It is appropriate and within the Board's discretion to find a violation of the Act and <br />suspend, modify, or revoke permit number M-1984-108. <br />Western Gravel, Inc. <br />Olathe Pit, M-1984-108 <br />MV-2011-007 2