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disturbance to the prevailing hydrologic balance of the affected land and the <br />surrounding land; failing to comply with applicable federal and state water quality <br />laws and regulations; and failing to comply with the conditions of an order, permit, <br />or regulation. <br />16. The Board issued an order effective December 8, 2011 ( "December 2011 <br />Order "), finding the Operator in violation of sections 34- 32- 116(7)(g), - 116(7)(h), and <br />-124, C.R.S., and Rule 3.1.6 of the Mineral Rules and Regulations of the Board for <br />Hard Rock, Metal, and Designated Mining Operations, 2 C.C.R. 407 -1 ( "Rules "). <br />The Board ordered the Respondent to: <br />a. submit past due Annual Water Monitoring Reports, a discharge <br />permit from CDPHE or written proof that the application process for such <br />discharge permit has commenced, and complete permanent closure of the <br />secondary escape -way; and <br />b. within 30 days of the effective date of the December 2011 Order, <br />pay a civil penalty of $9,800. <br />17. On or about December 22, 2011, the United States Department of the <br />Interior issued a letter to the Operator stating, among other things, that "[d]ue to <br />the recent inactivity, discharge of local consultants and lack of maintenance at the <br />Cash and Who Do Mines ... and Gold Hill Mill ..., the [Bureau of Land Management <br />( "BLM ")] has determined in accordance with 43 C.F.R. 3809.336(a) that the <br />Operator has abandoned these operations" and ordered the Operator to contact the <br />BLM or the BLM will initiate the financial guarantee forfeiture process. <br />18. The Operator failed to submit past due Annual Water Monitoring <br />Reports, a discharge permit from CDPHE or written proof that the application <br />process for such discharge permit has commenced, and complete permanent closure <br />of the secondary escape -way as ordered in the December 2011 Order. <br />19. The Operator failed to pay the $9,800 civil penalty ordered in the <br />December 2011 Order. <br />20. On January 9, 2012, the Division issued a Reason to Believe a <br />Violation Exists letter to the Operator informing it of the possible violations related <br />to its failure to comply with the December 2011 Order. The letter also provided <br />information about the February 8, 2012 hearing. <br />21. The Division holds a financial warranty for the Cash and Who Do <br />Mines, file number M- 1983 -141, in the amount of $175,900.00. <br />AGC Resources, LLC <br />Cash and Who Do Mines, M- 1983 -141 <br />MV- 2012 -006 <br />3 <br />