2012-01-09_ENFORCEMENT - M1994117

• Permit No: M1994117
• IBM Index Class Name: ENFORCEMENT
• Doc Date: 1/9/2012
• Doc Name: RTB Letter
• From: DRMS
• To: AGC Resources, LLC
• Email Name: MAC
• Email Name: TAK
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
January 9, 2012
AGC Resources, LLC
1580 Lincoln St, Suite 700
Denver, CO 80203
RE: Reason to Believe a Violation Exists at the Gold Hill Mill; DRMS File No.
M- 1994 -117
To Whom it May Concern,
Therefore, the Division has found reason to believe a violation exists to File No. M -1994 -117 and has
scheduled this matter before the Mined Land Reclamation Board.
Mined Land Reclamation
STATE OF COLORADO
COLORADO
D I V I S I O N O F
RECLAMATION
MINING
— &—
SAFETY
John W Hickenlooper
Governor
Mike King
Executive Director
Loretta E Pineda
Director
In the Board Order dated December 8, 2011, the Mined Land Reclamation Board found AGC Resources,
LLC to be in violation of §34- 32- 116(7)(c), C.R.S., for failing to handle acid - forming or toxic - producing
material in a manner that will protect the drainage system from pollution. You were ordered to complete
the following corrective action:
1) The Operator shall, within 30 days of the effective date of the Order, submit and obtain approval of a
technical revision addressing reclamation of the historic prospect pits and the transport of tailings
from the pond.
The Board imposed a civil penalty of $200 per day for 49 days of violation for a total civil penalty of
$9,800. The total civil penalty was to be submitted to the Division within 30 days of the effective date of
the Board Order.
The Division has not received a technical revision addressing reclamation of the historic prospect pits and
the transport of tailings from the pond. In addition, the civil penalty of $9,800 has not been submitted. As
a result, the Division believes you are in violation of C.R.S. 34 -32 -124 and C.R.S. 34- 32- 118(1)(b), for
failure to comply with the conditions of an order.
A Formal Public Hearing will occur at the February 8 -9, 2012 Board meeting for consideration of the
possible violation, as referenced above. Pursuant to C.R.S. §34 -32 -118, if the Board determines that you
have violated the December 8 2011 Board Order or that you are in default under your performance
warranty the Board may rule that your Financial Warranty is subject to forfeiture.
Pursuant to Rule 4.20, if the Board concludes that your Financial Warranty is subject to forfeiture, the
Board will notify you and all financial warrantors of a second hearing. At that second hearing, the Board
will consider whether your Financial Warranty should be forfeited and grant you and all financial
warrantors the right to appear before the Board. At the second hearing, the Board may withdraw or
modify any determination that the warranty is subject to forfeiture, settle or compromise the
Office of Office of
Denver • Grand Junction • Durango Active and Inactive Mines