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5. On July, 20, 2010, the Division sent a letter informing the Operator of <br />the bond cancellation and that a replacement warranty needs to be submitted thirty <br />(30) days prior to the effective date of the cancellation, by August 17, 2011. <br />6. On September 27, 2011, the Division inspected the South D -20 Pit. A <br />representative for the Operator, Shauna Hovey, attended the inspection. The <br />Division observed steep highwalls (greater than 3:1) along the southern pit edge, <br />around the power pole exclusion area, and at the north end of the disturbance; <br />numerous piles of processed materials on the pit floor; approximately 90,000 tons of <br />stockpiled material. <br />7. On October 26, 2011, the Division updated the reclamation bond based <br />on disturbances observed during the inspection, estimating that $218,877.81 is <br />required to reclaim the site. <br />8. On September 29, 2011, the Division sent a Reason to Believe a <br />Violation Exists letter to the Operator, a copy of which was sent to Washington <br />International. The letter notified the Operator and Washington International about <br />the date and location of the November 9, 2011 hearing, at least thirty (30) days <br />before the hearing, in accordance with section 34- 32.5- 118(2), C.R.S. <br />9. The financial warranty for the South D -20 Pit, permit number M -1992- <br />102, expired on September 16, 2011. The Operator failed to post a replacement <br />bond by September 16, 2011 or anytime thereafter. <br />CONCLUSIONS OF LAW <br />10. The Board has jurisdiction over this matter pursuant to the Colorado <br />Land Reclamation Act for the Extraction of Construction Materials, Article 32.5 of <br />Title 34, C.R.S. (2010) ( "Act "). <br />11. Under section 34- 32.5- 117(6)(a), C.R.S., a financial warranty must be <br />maintained in good standing for the life of a permit. The financial warranty for <br />permit number M- 1992 -102, surety bond number S4005090, expired and the <br />Operator has failed to submit a suitable replacement to the Division. <br />12. Under section 34- 32.5- 118(1)(c), C.R.S., a financial warranty shall be <br />subject to forfeiture whenever an operator has failed to maintain a financial warranty <br />in good standing as required by section 34- 32.5 -117. The Operator has failed to <br />maintain a financial warranty in good standing for permit number M- 1992 -102. <br />13. Pursuant to section 34 -32.5- 124(2), C.R.S., upon the Board's finding <br />that an operator violated or failed to comply with the conditions of an order, <br />permit, or regulation, the Board may issue a cease and desist order against the <br />Western Gravel, Inc. <br />South D -20 Pit, M- 1992 -102 <br />MV- 2011 -038 <br />2 <br />