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3. On May 5, 2009, the Division inspected the site and found that an <br />unapproved secondary escape -way had been constructed outside the permit boundary. <br />The Division required the Operator to conduct a survey and determine whether the <br />secondary escape -way had been constructed outside the permit boundary. <br />4. Permit number M- 1983 -141 was transferred from Mount Royale <br />Ventures, LLC to AGC Resources, LLC in August 2010. <br />5. On December 22, 2010, the Division conducted an inspection of the site <br />and found that the 3rd level adit was discharging mine water at a rate of <br />approximately 5 -10 gallons per minute. The Division required the Operator to <br />obtain a discharge permit from the Colorado Department of Public Health and <br />Environment ( "CDPHE "). <br />6. On May 26, 2011, the Operator submitted survey results which <br />demonstrated that the secondary escape -way was constructed outside the permit <br />boundary. The Operator committed to permanently close the secondary escape -way <br />by August 31, 2011. <br />7. The Operator failed to close and reclaim the secondary escape -way. <br />8. The Division inspected the site on August 24, 2011 for the purpose of <br />following up on several outstanding problems identified during previous <br />inspections. Boulder County representatives and the landowner, Mark Steen, <br />attended the inspection. <br />9. During the August 24, 2011 inspection, the Division observed that, <br />among other things, the 3rd level adit was still discharging mine water. The Division <br />also found that the Operator had not obtained a discharge permit from CDPHE. <br />10. On September 12, 2011, the Division sent the Operator a Reason to <br />Believe a Violation Exists letter which provided notice regarding the alleged <br />violations and the October 2011 hearing. <br />11. On September 16, 2011, the Division sent the Operator the August 24, <br />2011 inspection report. <br />12. The Operator has failed to submit Annual Water Monitoring Reports <br />for 2009 and 2010. <br />13. The Operator disturbed approximately 100 square feet of land outside <br />of the approved permit boundary. <br />AGC Resources, LLC <br />Cash and Who Do Mines, M- 1983 -141 <br />MV- 2011 -030 <br />2 <br />