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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 />August 8, 2011 <br />Fred Duckels <br />Duckels Construction, Inc. <br />3500 Duckels Court <br />Steamboat Springs, CO 80487 <br />Dear Mr. Duckels: <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pileda <br />Director <br />RE: Reason to Believe a Violation Exists, Notice of Possible Financial Warranty Forfeiture, Safeco <br />Insurance Company of America Bond No. in the amount of $35,000.00, Bettger <br />Gravel Pit, Routt County, Permit No. M -1976 -051. <br />The Colorado Land Reclamation Act for the Extraction of Construction Materials and Permit M- 1976 -051 <br />require that you maintain a financial warranty in good standing for the entire life of the permit. On August <br />1, 2011 the financial warranty for this permit was canceled. A replacement financial warranty in the amount <br />of $35,000.00 was required to be filed with the Division of Reclamation, Mining and Safety (Division) by <br />August 1, 2011. To date, a replacement fmancial warranty has not been received by the Division. The <br />Division believes this is in violation of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, C.R.S. 34- 32.5 -101 et. sec , and specifically C.R.S. 34- 32.5 -117 (6) for failure to <br />maintain a financial warranty in good standing for the life of the permit. Therefore, the Division has reason <br />to believe Duckels Construction, Inc. is in violation of Permit M- 1976 -051 and the Law, and has scheduled <br />this matter before the Mined Land Reclamation Board (Board). <br />A Formal Hearing will be held during the September 14 -15, 2011 Mined Land Reclamation Board (Board) <br />meeting for consideration of the violation. The hearing will be held at 1313 Sherman Street, Room 318, <br />Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be considered. You have <br />the 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 $35,000.00 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 WISH TO AVOID THESE CONSEQUENCES, PLEASE SUBMIT A REPLACEMENT <br />FINANCIAL WARRANTY AS DESCRIBED IN C.R.S. 34- 32.5 -117. <br />Office of Office of <br />Denver • Grand Junction • Durango Active and inactive Mines <br />