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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 />AGC Resources, LLC <br />Gold Hill Mill, M -1994 -117 <br />MV- 2011 -033 <br />CONCLUSIONS OF LAW <br />8. The Board has jurisdiction over this matter pursuant to sections 34 -32- <br />104 through 107, and 124 of the Colorado Mined Land Reclamation Act, Article 32 <br />of Title 34, C.R.S. (2010) ( "Act "). <br />9. The Operator failed to handle acid- forming or toxic- producing material <br />in a manner that will protect the drainage system from pollution, in violation of <br />section 34- 32- 116(7)(c), C.R.S. <br />10. Section 34- 32- 124(7), C.R.S. provides for a civil penalty of not less than <br />$100 per day nor more than $1,000 per day for each day during which a violation <br />occurs. The Board may impose a penalty based on 49 days of violation (from the <br />inspection date to the hearing date) at $50 to $200 per day for a civil penalty of <br />$2,450 to $9,800. <br />ORDER <br />The Operator did not appear in this matter to present any mitigating factors. <br />There is no information before the Board indicating that any action other than the <br />relief requested is appropriate. Therefore, based on the foregoing, the Board enters <br />the following order: <br />The Board finds the Operator in violation of section 34- 32- 116(7)(c), C.R.S., <br />for failing to handle acid - forming or toxic- producing material in a manner that will <br />protect the drainage system from pollution. <br />The Board imposes against the Operator the following CORRECTIVE <br />ACTION: the Operator shall, within 30 days of the effective date of this Order, <br />submit and obtain approval of a technical revision to permit number M -1994 -117 <br />addressing reclamation of the historic prospect pits and the transport of tailings <br />from the pond. <br />2 <br />