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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />Notice of Violation No. MV- 2011 -030 <br />FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER <br />IN THE MATTER OF THE NOTICE OF POSSIBLE VIOLATION BY AGC <br />RESOURCES, LLC, CORRECTIVE ACTIONS, AND CIVIL PENALTIES FOR <br />FAILURE TO PROTECT AREAS OUTSIDE OF THE AFFECTED LAND, <br />FAILURE TO MINIMIZE DISTURBANCE TO THE PREVAILING HYDRAULIC <br />BALANCE, FAILURE TO COMPLY WITH FEDERAL AND STATE WATER <br />QUALITY LAWS, AND FAILURE TO COMPLY WITH THE CONDITIONS OF <br />AN ORDER, PERMIT OR REGULATION, File No. M- 1983 -141 <br />THIS MATTER came before the Mined Land Reclamation Board ( "Board ") <br />on October 12, 2011 in Denver, Colorado to consider a possible violation, <br />corrective actions, and civil penalties against AGC Resources, LLC ( "Operator ") <br />for failure to protect areas outside of the affected land from slides or damages <br />occurring during the mining operation, failure to minimize disturbance to the <br />prevailing hydraulic balance, failure to comply with federal and state water <br />quality laws, and failure to comply with the conditions of an order, permit or <br />regulation, file number M- 1983 -141. Michael Cunningham appeared on behalf of <br />the Division of Reclamation, Mining and Safety ( "Division "). There were no <br />appearances on behalf of the Operator. <br />The Board, having considered the materials presented with this matter and <br />having been otherwise fully informed of the facts in this matter, hereby enters <br />the following: <br />FINDINGS OF FACT <br />1. The Operator holds a 110(2) permit for a 9.83 -acre gold and silver <br />mining operation. The site, known collectively as the Cash and Who Do Mines, is <br />located in Section 12, SE 1 /4, Township 1 North, Range 72 West, 6th Principal <br />Meridian, 10 miles northwest of Boulder, Colorado in Boulder County. <br />2. On December 21, 2004, the Division conducted an inspection of the site <br />and found that the 3rd level adit was discharging mine water. In April 2007, the <br />Division approved a surface and groundwater monitoring plan through Technical <br />Revision 06 to permit number M- 1983 -141. Under Technical Revision 06, the <br />Operator is required to submit Annual Water Monitoring Reports to the Division <br />with the Annual Report. <br />