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g.. 65& 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 17, 2011 <br />Judy DeVincentis <br />Western Gravel, Inc. <br />3001 N. Townsend Ave. <br />Montrose, CO 81401 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Piheda <br />Director <br />RE: Reason to Believe a Violation Exists, Notice of Possible Financial Warranty Forfeiture, <br />Wahingtoo International Insurance Bond No. in the amount of $63,000.00, Corey <br />Pit Corey Pit # 3, Montrose County, Permit No. M-1987-024 <br />Dear Ms. DeVincentis: <br />The Colorado Land Reclamation Act for the Extraction of Construction Materials and Permit M-1987-024 <br />require you to maintain a financial warranty in good standing for the entire life of the permit. On June 10, <br />2011 the financial warranty for this permit is canceling. A replacement financial warranty in the amount of <br />$63,000.00 was required to be filed with us by May 11, 2011. To date, we have not received a replacement <br />financial warranty. The Division believes this is in violation of the Colorado Land Reclamation Act for <br />the Extraction of Construction Materials, C.R.S. 34-32.5-101 et. seq.. and specifically C.R.S. 34-32.5-117 <br />(6) for failure to maintain a financial warranty in good standing for the life of the permit. Therefore, the <br />Division has reason to believe Western Gravel is in violation of Permit M-1987-024 and the Law, and has <br />scheduled this matter before the Mined Land Reclamation Board (Board). <br />A Formal Hearing will be held during the July 13-14, 2011 Mined Land Reclamation Board meeting for <br />consideration of the violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, <br />Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be considered. Also, you have the <br />right to be represented and heard at the hearing. <br />If the Board finds a violation at this hearing, it may issue a cease and desist order, assess a civil penalty_in__.. <br />the amount of $100.00 to $1000.00 for each day of violation, or order the permit be suspended, modified, or <br />revoked. In addition it may set the matter for consideration of forfeiture of the $18,921.00 financial <br />warranty at a subsequent hearing. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY <br />OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. <br />34-32.5-120) UNTIL THE VIOLATION IS ABATED. <br />IF YOU WANT TO AVOID THESE CONSEQUENCES, PLEASE SUBT-VIIi A REPLACEMENT <br />FINANCIAL WARRANTY AS DESCRIBED IN C.R.S. 34-32.5-117 BY JUNE 24, 2011. <br />Office of Office of <br />Mined Land Reclamation I Denver Grand Junction Durango Active and Inactive Mines