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During the inspection conducted on May 5, 2009, the Division was unable to determine if this disturbance <br />occurred outside of the permit boundary due to a lack of boundary markers. The Division cited a problem for a <br />lack of boundary markers and the Operator was instructed to conduct a survey of the permit boundary and <br />determine if the disturbance was within the permitted acreage. The Operator conducted a survey of the <br />permit boundary and found that the escape -way was located outside of the permit boundary; the results of <br />the survey were submitted on May 26, 2011. <br />Based on the findings of this inspection, the Division has reason to believe the Operator is in violation of the <br />following statutes: <br />1. C.R.S. 34- 32- 116(7)(h) for failure to protect areas outside of the affected land from damage occurring <br />during the mining operation and reclamation. <br />2. C.R.S. 34- 32- 116(7)(g) for failure to minimize disturbance to the prevailing hydrologic balance of the <br />affected land and of the surrounding area and to the quality and quantity of water in surface and <br />groundwater systems; AND /OR Hard Rock Rule 3.1.6(1)(b) for failure to comply with applicable federal <br />and Colorado water quality laws and regulations, including statewide water quality standards and site - <br />specific classifications and standards adopted by the Water \Quality Control Commission. <br />3. C.R.S. 34 -32 -124 for failure to comply with the conditions of an order, permit, or regulation. <br />These possible violations will be scheduled for the October 12 -13, 2011 Mined Land Reclamation Board <br />Hearing. Notice of such hearing will be sent under separate cover. <br />This concluded the inspection. <br />PERMIT #: M -1983 -141 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 24, 2011 <br />Page 4 of 7 <br />