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5. On December 21, 2004, the Division conducted an inspection of the site <br />and found that the historic prospect pits had not been reclaimed and that tailings <br />continued to be blown from the pond. The tailings constitute acid - forming or toxic - <br />producing material. <br />6. 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 />7. On September 16, 2011, the Division sent the Operator the August 24, <br />2011 inspection report. <br />8. On September 23, 2011, the Division received notice that the primary <br />contact for the Operator was no longer affiliated with AGC Resources, LLC. <br />9. On October 12, 2011, the Board held a hearing to consider an alleged <br />violation by the Operator for failing to handle acid - forming or toxic- producing <br />material in a manner that will protect the drainage system from pollution. The <br />Board issued an order effective December 8, 2011 ( "December 2011 Order "), finding <br />the Operator in violation of section 34- 32- 116(7)(c), C.R.S. The Board ordered the <br />Respondent to: <br />a. within 30 days of the effective date of the December 2011 Order, <br />submit and obtain approval of a technical revision to permit number M -1994- <br />117 addressing reclamation of the historic prospect pits and the transport of <br />tailings from the pond; and <br />b. pay a civil penalty of $9,800 within 30 days of the effective date <br />of the December 2011 Order. <br />10. 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 />11. The Operator failed to submit and obtain approval of a technical <br />revision to permit number M- 1994 -117 addressing reclamation of the historic <br />prospect pits and the transport of tailings from the pond as ordered in the December <br />2011 Order. <br />AGC Resources, LLC <br />Gold Hill Mill, M- 1994 -117 <br />MV- 2012 -005 <br />2 <br />